Which of the Following Statements Regarding a Taxpayer's Principal Residence

question 39

Multiple Choice

Which of the following statements regarding a taxpayer's principal residence is true for purposes of determining whether the taxpayer is eligible to exclude gain realized on the sale of the residence?

• A) A taxpayer with more than one residence may annually elect which residence is considered to be the principal residence.
• B) A taxpayer may have more than one principal residence at any one time.
• C) A taxpayer's principal residence may not be a houseboat.
• D) None of these statements is true.

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Definitions:

Divisional Structure

An organizational structure where operations are segmented based on projects, products, or geographic locations.

Functional Structure

An organizational structure that groups together employees who perform similar functions or tasks.

Modular Design

A system in which a process, product, or service is divided into components that can be changed independently and then reintegrated into the system.

Economies Of Scale

The cost advantages that enterprises obtain due to the scale of their operations, typically resulting in lower costs per unit as production increases.