Which of the Following Is/are Correct Concerning a Principal Residence

question 83

Multiple Choice

Which of the following is/are correct concerning a principal residence?
I.The maximum amount of gain a single taxpayer can exclude on the sale of a principal residence is $500,000.
II.To qualify for a $250,000 exclusion, a single taxpayer must have owned and used the property as a principal residence for at least 2 of the previous 5 years.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Bipolar Disorder

A mental health condition characterized by significant mood swings including manic highs and depressive lows.

Conversion Disorder

A somatoform disorder in which a person suffers a loss of motor or sensory functioning in some part of the body; the loss has no physical cause but solves some psychological problem.

Social Phobias

Intense fear of social situations, leading to significant anxiety and avoidance of social interaction.

Specific

Distinct or particular to something or someone, as opposed to being general or vague.