To Qualify for the § 121 Exclusion, the Property Must

question 26

True/False

To qualify for the § 121 exclusion, the property must have been used by the taxpayer for the 5 years preceding the date of sale and owned by the taxpayer as the principal residence for the last 2 of those years.

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Definitions:

Comparison Level For Alternatives

A standard by which an individual evaluates the attractiveness of alternative groups or relationships based on past experiences or expectations.

Similarity Principle

The similarity principle posits that individuals are more likely to form and maintain relationships with others who are similar to them in various aspects.

Complementarity Principle

A concept suggesting that relationships are strongest and most stable when partners possess traits that complement or enhance each other's abilities or characteristics.

Group Formation

The process by which individuals come together to form a group, often going through various stages of development such as forming, storming, norming, and performing.