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:

Dramatic Actions

Significant and bold moves taken to achieve an objective, often carrying high risk or impact.

Vision

A clear and inspirational long-term desired outcome that a person or organization aims to achieve.

Communicating

The process of conveying information, ideas, feelings, and thoughts through speech, writing, signals, or behavior to achieve effective understanding or action.

Incentives

Motivations or rewards offered to encourage specific behaviors or actions.