The Taxpayer Can Elect to Have the Exclusion of Gain

question 53

True/False

The taxpayer can elect to have the exclusion of gain under § 121 (sale of principal residence) not apply.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Activities

Transactions related to the primary business operations, like selling goods or services and other core business activities, reflected in the company's cash flow.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Long-term investments in physical assets such as property, plants, and equipment.