In Order to Be Eligible to Exclude Gain on the Sale

question 80

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 tests?

• A) Rental test
• B) Use test
• C) Ownership test
• D) Business use test
• E) Two of these

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Definitions:

Adjustment

A modification made to accounts or financial statements to correct them or to reflect changes in economic circumstances.

Unearned Subscription Revenue

Revenue received in advance for services or goods to be provided in the future, recognized as a liability until delivered.

Subscription Revenue

Income generated from customers who pay a recurring price at regular intervals for access to a product or service.

Quarterly

Pertaining to a period of three months or a quarter of a year, often used in finance to denote regular intervals for reporting or payment.