Which of the Following Statements Regarding the Exclusion of Gain

question 5

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 must be living in a residence at the time it is sold to qualify for the exclusion.
• C) A taxpayer may simultaneously own two homes that are eligible for the home sale 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:

Guaranteed Income

A system of social welfare that proposes that all citizens receive an unconditional sum of money, regardless of their employment status.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country or community.

Class Analysis

A study in sociology that focuses on the distribution of wealth and labor in a society, and how this distribution creates distinct social classes with different interests and power.

Functionalist Analysis

A sociological perspective that analyzes every component of society by examining its role in maintaining the overall societal stability.