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:

Equation

An equation is a mathematical statement that asserts the equality of two expressions, typically including one or more variables.

Decimal Places

The number of digits to the right of the decimal point in a number, indicating the precision or fraction part.

Percent

A part per hundred ratio, a way of expressing a number as a fraction of 100.

Decimal

A number representing a fraction or a whole number using a point to separate the whole part from the fractional part.