Homeowners with Appreciated Principal Residences Can Avoid Tax on Gains

question 54

True/False

Homeowners with appreciated principal residences can avoid tax on gains of up to $500,000 if married and filing jointly and up to $250,000 if single.The home must have been owned and used as the taxpayer's private residence for two out of the last three years prior to the date of sale.

---

Definitions:

Operating Activities

Transactions and other events related to the day-to-day function of a business, typically involving revenue and expense activities directly affecting cash flow.

Investments In Securities

Financial assets such as stocks, bonds, or mutual funds purchased with the intent of generating income or appreciating in value.

Operating Activities

Activities that relate to a company's primary business operations, such as selling goods or services, which are reflected in its cash flow statement.

Interest Received

The amount of interest income earned on investments like bonds, savings accounts, or other interest-bearing assets during a specific period.