Which of the Following Is True About the Gain Excluded

question 36

Multiple Choice

Which of the following is true about the gain excluded on the sale of a personal residence by certain individuals?

• A)The taxpayer generally must be at least 55 years of age on the date of sale.If husband and wife sell a jointly owned residence, both must be at least 55 years of age.
• B)The residence must have been used by the taxpayer as his/her personal residence for at least five of the seven years preceding the sale.
• C)Any portion of gain in excess of the limit must be recognized.
• D)Only one residence qualifies for this exclusion during a person's lifetime.

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Definitions:

Hypercompetition

describes a business environment characterized by intense and rapid competitive moves, where advantages are quickly eroded due to constant disruptive changes.

Competitors

Entities that compete within the same market for the same customers or resources.

Environmental Threats

Potential harmful effects on the natural environment from human activities or natural processes.

Resource Scarcities

Situations where the availability of resources is insufficient to meet the demands, often leading to competition and increased value of the scarce resources.