Match Each Statement with the Correct Term Below

question 29

Multiple Choice

Match each statement with the correct term below.
-Principal residence

• A)Losses are never deferred.
• B)Must be real property used for business or as a investment.
• C)Not considered like-kind property.
• D)A taxpayer can have only one at a time.
• E)The maximum amount that can be recognized on a like-kind exchange.
• F)This type of exchange must be completed within 180 days of first property transfer.
• G)The concept upon which the ability to defer gains on certain nontaxable transactions relies.

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Definitions:

Medical Deduction

An allowable deduction in U.S. taxes for expenses related to healthcare exceeding a certain percentage of one's adjusted gross income.

Chiropractor's Services

Medical treatments provided by a licensed practitioner focusing on the diagnosis and treatment of neuromuscular disorders, primarily through manual adjustment or manipulation of the spine.

Federal Income Taxes

Taxes levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Itemized Deduction

involves subtracting eligible expenses from one's taxable income, instead of taking the standard deduction. These expenses are listed out or itemized on the tax return.