If One Spouse Sells a Home and Excludes the Gain

question 12

Multiple Choice

If one spouse sells a home and excludes the gain on the sale,the gain on the sale of a residence by the other spouse is:

• A)Never excluded.
• B)Excluded up to $500,000.
• C)Excluded up to $250,000.
• D)Excluded up to $250,000 plus any gain exclusion not used by the first spouse.

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Definitions:

Medication

Any substance used to diagnose, cure, treat, or prevent disease or improve a condition or symptom.

Paperwork

Written or printed documents, forms, or records that are used for organizing, recording, or communicating information.

Risk Management

The identification of all exposure to financial loss of a business and includes the selection of techniques to manage those exposures; The Joint Commission defines risk management in health care as “clinical and administrative activities undertaken to identify, evaluate, and reduce the risk of injury to patients, staff, and visitors and the risk of loss to the organization itself.”

Financial Loss

Occurs when the value of an asset decreases or expenses surpass income, leading to a negative financial outcome.