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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.


Definitions:

Hydrolysis

A chemical reaction that involves the breaking of a bond in a molecule using water, commonly seen in the breakdown of biomolecules.

Nitriles

Organic compounds containing a cyano group (-C≡N) bonded to an alkyl group, known for their use in organic synthesis and as solvents.

Amides

Organic compounds characterized by a carbonyl group (C=O) attached to a nitrogen atom.

Lithium Aluminum Hydride

A powerful reducing agent used in organic chemistry for the reduction of aldehydes, ketones, and esters to alcohols.

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