To Qualify for the § 121 Exclusion, the Property Must

question 26

True/False

To qualify for the § 121 exclusion, the property must have been used by the taxpayer for the 5 years preceding the date of sale and owned by the taxpayer as the principal residence for the last 2 of those years.

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Definitions:

Monthly Demand

The total quantity of a product that consumers are willing and able to purchase within a specific month.

Variable Manuf. Cost

Expenses that vary in direct relation to the amount of production, including costs like raw materials and direct labor.

Unavoidable Allocated Fixed Corporate Costs

These are fixed costs that are essential and non-avoidable, allocated across different departments or projects within a corporation.