To Be Allowed to Exclude Gain on the Sale of a Principal

question 13

True/False

To be allowed to exclude gain on the sale of a principal residence, the taxpayer selling the home must be using the home as a principal residence at the time of the sale.

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources, leading to the necessity of choice.

Economic Problem

The fundamental issue of having limited resources to meet unlimited wants and needs, requiring choices and priorities in allocation.

Available Resources

The total assets, both natural and man-made, that can be utilized to produce goods and services.

Production Possibilities Curve

A graph that shows the maximum number of possible units a company can produce if it only produces two types of goods.