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:

Decision Tree

A predictive model used in decision analysis to visually map out choices and their potential outcomes, risks, or rewards.

Leadership

The ability to inspire, influence, and guide others toward achieving common goals and visions.

Group Decide

The act of making choices or coming to conclusions as a collective, rather than by individuals independently.

Leadership Style

Refers to the manner and approach of providing direction, implementing plans, and motivating people.