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:

Miasma

An outdated medical theory suggesting diseases are spread through polluted air or bad smells from decaying organic matter.

Cholera

An infectious disease caused by ingesting contaminated water or food, characterized by vomiting, severe dehydration, and diarrhea, and can be lethal if not treated promptly.

Malnourished

A condition resulting from insufficient intake of nutrients.

Social Sanction

Punitive measures or actions taken by a social group to enforce norms and rules, aimed at controlling behavior.