The Ownership Test for Excluding Gain on the Sale of a Principal

question 78

True/False

The ownership test for excluding gain on the sale of a principal residence requires the taxpayer to have owned the property for three or more years during the five year period ending on the date of sale.The taxpayer must have owned the property for two or more years.

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Definitions:

AASB 141

An Australian Accounting Standards Board standard that concerns agriculture, detailing the accounting for agricultural activity including the transformation of biological assets (living plants and animals) into agricultural produce.

IAS 41

The International Accounting Standard that deals with the accounting for agriculture, including the recognition and measurement of biological assets.

Biological Assets

Living plants or animals that are held by an entity for the purpose of selling them, producing agricultural produce, or providing services.

Agricultural Produce

Products resulting from agricultural activities that have not been processed significantly, such as crops, livestock, and fisheries.