Taxpayer Acquired a Personal Residence Ten Years Ago When He

question 69

Essay

Taxpayer acquired a personal residence ten years ago when he was 50 years old.During this period he has occupied the residence for only nine months (out of 12)each year due to winter vacations in Florida.Is taxpayer eligible for exclusion of gain under § 121?

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Definitions:

Savings Deposit

A bank deposit that typically earns interest and is intended for holding money that is not expected to be spent immediately.

M1

M1 is a category of the money supply that includes all physical money such as coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash.

Outstanding Loans

The total amount of borrowed funds that are still owed by the borrower to the lender, including both principal and interest.