Which of the Following Statements Is False with Regard to the Ownership

question 49

Multiple Choice

Which of the following statements is false with regard to the ownership and use tests under Sec.121?

• A)The taxpayer must be occupying the residence at the time of the sale in order for Sec.121 to apply.
• B)If a principal residence is sold before satisfying the ownership and use tests,part of the gain may be excluded if the sale is due to a change in employment,health,or unforeseen circumstances.
• C)For purposes of the two-year ownership rule,a taxpayer's period of ownership includes the period during which the taxpayer's deceased spouse owned the residence.
• D)When a taxpayer receives a residence from a spouse or an ex-spouse incident to a divorce,the taxpayer's period of owning the property includes the time the residence was owned by the spouse or ex-spouse.

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Definitions:

Evolutionarily Advantageous

Traits or behaviors that increase an organism's chances of survival and reproduction in a particular environment.

Dominance Structuring

The organization or arrangement of elements in a system, group, or interaction according to their level of power or control.

Promising Option

A choice or decision that shows potential to yield beneficial results based on preliminary evidence or analysis.

Dominant Option

A choice or alternative considered superior or more advantageous compared to others in a decision-making scenario.