If a Gain Realized on the Sale of a Personal

question 85

True/False

If a gain realized on the sale of a personal residence is above the allowed exclusion, the excess may be deferred through a reduction in the basis of the new residence.

---

Definitions:

Subsidies

Government grants or financial support to businesses, individuals, or organizations to encourage the production of goods, reduce costs, or support public objectives.

Economic Efficiency

A condition where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Energy Sources

The origins from which energy is produced, including renewable sources like solar and wind, and non-renewable sources like coal and oil.

Economies Of Scale

A situation in which the cost per unit of output decreases as the scale of production increases, due to factors such as operational efficiencies and synergies.