Which of the Following Is/are Correct Concerning a Principal Residence

question 83

Multiple Choice

Which of the following is/are correct concerning a principal residence?
I.The maximum amount of gain a single taxpayer can exclude on the sale of a principal residence is $500,000.
II.To qualify for a $250,000 exclusion, a single taxpayer must have owned and used the property as a principal residence for at least 2 of the previous 5 years.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Third-Party Logistics

External companies hired to manage all or part of another company’s logistics functions, including transportation, warehousing, and distribution.

Outsourcing

The practice of hiring third parties to perform services or produce goods traditionally performed or made in-house, to reduce costs or improve efficiency.

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption.

Company Coalition

A temporary alliance or partnership between companies to achieve a common objective, often strategic or operational.