Which of the Following Statements Regarding the Exclusion of Gain

question 72

Multiple Choice

Which of the following statements regarding the exclusion of gain on the sale of a principal residence is correct?

• A)A taxpayer may not exclude gain if the taxpayer is renting the residence at the time of the sale.
• B)A taxpayer may simultaneously own two homes that are eligible for the home sale exclusion.
• C)A taxpayer must be living in a residence at the time it is sold to qualify for the exclusion.
• D)For a married couple to qualify for the $500,000 exclusion, both spouses must meet the ownership and use tests.

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Definitions:

Hamburgers

A popular food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bun, often served with condiments and toppings.

Substitutes

are goods or services that can replace each other in use, satisfying similar needs or desires, where an increase in the price of one leads to an increase in demand for the other.

Hot Dogs

A type of cooked sausage, usually grilled or steamed and served in a sliced bun as a sandwich.

Hamburgers

A popular food item consisting of cooked ground meat, usually beef, placed inside a sliced bun, often served with various condiments and toppings.