A Single Taxpayer May

question 65

Multiple Choice

A single taxpayer may

• A)not exclude from current income any of the capital gain on the sale of a home.
• B)exclude up to $250,000 of the capital gain every time he or she sells a home as long as they have lived in the home for a period of two years.
• C)exclude up to $250,000 of the capital gain every time he or she sells a home only if they are at least 55 years of age.
• D)exclude all of the capital gain on the sale of a home;however,this exclusion may only be taken once in a lifetime.

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Definitions:

Costs

represent the total expenditures required to produce a good or service, including materials, labor, and overhead.

Benefits

Advantages or payments made to employees or members of insurance or social welfare programs.

Government Functions

The activities and responsibilities undertaken by a government, including legislation, law enforcement, and the provision of public goods and services.

Rights of Individuals

Legal, social, or ethical principles of freedom or entitlement; the fundamental normative rules about what is allowed or owed to people.