In Order to Be Eligible to Exclude Gain on the Sale

question 8

Multiple Choice

In order to be eligible to exclude gain on the sale of a principal residence,the taxpayer must meet which of the following tests?

• A)Rental test
• B)Use test
• C)Ownership test
• D)Business use test
• E)Use test and Ownership test

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Definitions:

Paradigm

A pattern or model of something, or a set of concepts and practices that defines a way of understanding and doing things in a particular domain.

Phenomenon

An observable event or fact that can be scientifically described or explained.

Interrelated

Elements or factors that are connected to one another in such a way that changes in one may affect the others.

Interdependent

Mutually dependent; the condition in which two or more persons or elements rely on each other for support, functioning, or survival.