In Order to Be Eligible to Exclude Gain on the Sale

question 86

Multiple Choice

In order to be eligible to exclude gain on the sale of a principal residence, the taxpayer must meet which of the following test(s) ?

• A)Rental test.
• B)Use test.
• C)Ownership test.
• D)Business use test.
• E)Ownership and use test.

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Definitions:

Power-Driven Machinery

Machines that operate using an external source of power, such as electricity, steam, or fuel, allowing for more efficient production processes in various industries.

Factory Town

A settlement where the main source of employment and community life centers around manufacturing plants or factories.

Voluntary Manumission

The act of a slave owner freeing their slaves of their own volition, without external compulsion, a practice that varied in its frequency and conditions throughout history.

Plantation Crop

A type of crop specifically grown on a large estate or plantation, primarily for sale and not for local consumption, typically including commodities like tobacco, cotton, sugar, and tea.