The Taxpayer Must Elect to Have the Exclusion of Gain

question 14

True/False

The taxpayer must elect to have the exclusion of gain under § 121 (sale of principal residence) apply.

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Definitions:

Maximin Criterion

The claim that the government should aim to maximize the well-being of the worst-off person in society.

Equal Income

A hypothetical or policy-driven scenario where all individuals or households receive the same amount of income.

Transitory Income

Income that is temporary or not consistent, such as bonuses, gifts, or any other earnings that are not regular or guaranteed.

Absolute Level

A specific, fixed point or quantity that is not relative or compared to any other point or quantity.