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.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

False Sense

An incorrect or mistaken impression of understanding or belief.

Comparative Inferences

The process of drawing conclusions based on the comparison of two or more entities or situations.

Emotionally Rewarding

Describes an experience or action that brings satisfaction, happiness, or a positive emotional response.

XYZ Company

A placeholder name used to refer to a fictional or unspecified company in discussions or examples.