Which of the Following Is/are Correct Regarding the Sale of a Principal

question 94

Multiple Choice

Which of the following is/are correct regarding the sale of a principal residence?
I.A single taxpayer can only use the $250,000 exclusion once every 3 years.
II.Married taxpayers who both meet the ownership and use tests and file jointly can each exclude $250,000 of gain ($500,000 total) on the sale of their principal residence.
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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:

Ready

Being in a suitable state for an activity, action, or situation; fully prepared.

Item

An individual article or unit, especially one that is part of a list, collection, or set.

Numeric Filing System

An organizational method that arranges files or records in order of assigned numbers.

Confidentiality

A principle that emphasizes the privacy of personal information, ensuring that it is shared only with authorized parties.