Which of the Following Statements Regarding the Exclusion of Gain

question 72

Multiple Choice

Which of the following statements regarding the exclusion of gain on the sale of a principal residence is correct?

• A)A taxpayer may not exclude gain if the taxpayer is renting the residence at the time of the sale.
• B)A taxpayer may simultaneously own two homes that are eligible for the home sale exclusion.
• C)A taxpayer must be living in a residence at the time it is sold to qualify for the exclusion.
• D)For a married couple to qualify for the $500,000 exclusion, both spouses must meet the ownership and use tests.

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Definitions:

Prehypertension

A condition where an individual's blood pressure is elevated above normal but not high enough to be classified as hypertension, indicating a risk for developing high blood pressure.

Hemorrhagic Stroke

A type of stroke caused by bleeding into the brain, either from a ruptured blood vessel or an abnormal vascular structure.

Aneurysm

A localized enlargement or ballooning of a blood vessel due to weakness in the vessel wall.

Cardiovascular Disease

A class of diseases involving the heart and blood vessels, including heart disease, hypertension, and stroke.