Which of the Following Statements Regarding a Taxpayer's Principal Residence

question 44

Multiple Choice

Which of the following statements regarding a taxpayer's principal residence is true for purposes of determining whether the taxpayer is eligible to exclude gain realized on the sale of the residence?

• A) A taxpayer may have more than one principal residence at any one time.
• B) A taxpayer's principal residence may not be a houseboat.
• C) A taxpayer with more than one residence may annually elect which residence is considered to be the principal residence.
• D) None of these statements is true.

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Definitions:

Becoming The Enemy

A situation in which individuals or groups adopt the behaviors or characteristics of their opponents, often in conflict or competition.

Arbitration

A form of dispute resolution where a neutral third party (the arbitrator) makes a binding decision to settle a conflict.

Adjudication

The legal process of resolving a dispute or deciding a case.

Facilitation

The process or action of making an operation or activity easier or more convenient, often in group settings or discussions.