To Qualify for the IRC Section 121 Exclusion of Gain

question 51

True/False

To qualify for the IRC Section 121 exclusion of gain on the sale of a residence,the taxpayer must have lived in the home for a continuous two-year period.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in its price, indicating how sensitive the quantity is to price changes.

Quantity Demanded

The cumulative quantity of a product or service that buyers are ready and capable of buying at a certain price level.

Elasticity Coefficient

A numeric value that measures the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Buyer Responsiveness

The degree to which consumers adjust their demand for a product or service in response to changes in price or other factors.