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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