A Single Taxpayer Who Meets the Ownership and Use Tests

question 23

True/False

A single taxpayer who meets the ownership and use tests may exclude gain of $250,000 on the sale of her principal residence under § 121.Any gain in excess of $250,000 must be recognized.

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Definitions:

Private Law

Private law governs the relationships between private individuals or entities, dealing with issues such as contracts, property, and family relations, distinguishing it from public law which involves the state.

Civil Law

A legal system based on written codes or statutes, in contrast to common law, which is based on judicial decisions and precedents.

Criminal Law

The body of law that relates to crime and prescribes conduct perceived as threatening, harmful, or otherwise endangering to property, health, safety, and moral welfare of people.

Preponderance Of Evidence

A standard of proof in civil cases, requiring that a party's evidence be more convincing than the opponent's evidence to win the case.