Which of the Following Is/are Correct Regarding the Sale of a Principal

question 94

Multiple Choice

Which of the following is/are correct regarding the sale of a principal residence?
I.A single taxpayer can only use the $250,000 exclusion once every 3 years.
II.Married taxpayers who both meet the ownership and use tests and file jointly can each exclude $250,000 of gain ($500,000 total) on the sale of their principal residence.
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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:

Stockholder's Equity

Stockholder's equity represents the owners' claims on the assets of a corporation, calculated as the difference between total assets and total liabilities.

Disposal

The process of getting rid of an asset or waste, which can involve selling, recycling, or discarding.

Discontinued Operations

Parts of a company's core business or segments that have been sold, disposed of, or ceased to operate.

Continuing Operations

Continuing operations refer to the sections of a company's business that it expects to continue for the foreseeable future, defining its ongoing, core activities.