Which of the Following Is/are Correct Regarding the Sale of a Principal

question 77

Multiple Choice

Which of the following is/are correct regarding the sale of a principal residence?
I.A taxpayer who is single and fails to meet the ownership or use test due to change in employment is entitled to a pro rata share of the $250,000 exclusion.
II.A single taxpayer can exclude up to $250,000 of the gain on the sale of a vacation home.
​

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

---

Definitions:

Organic Solidarity

The type of social bonds present in modern societies, based on difference, interdependence, and individual rights.

Mechanical Solidarity

The type of social bonds present in premodern, agrarian societies, in which shared traditions and beliefs created a sense of social cohesion.

Interdependence

A mutual reliance between two or more groups, individuals, or systems for support or functioning.

Organic Solidarity

A concept in sociology that describes how complex societies maintain social cohesion and integration through interdependence and the specialization of roles.