The Ownership Test for Excluding Gain on the Sale of a Principal

question 65

True/False

The ownership test for excluding gain on the sale of a principal residence requires the taxpayer to have owned the property for three or more years during the five-year period ending on the date of sale.

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Definitions:

Revenue

The overall income produced from selling goods or services that are central to a company's main business activities.

Profit and Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

Comparative Purposes

For purposes of comparison, often to analyze differences or similarities between two or more items or situations.

External Data

Information that originates outside the organization and is used for analysis or decision making.