If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a second residence, he or she can exclude (up to $250,000 for a single taxpayer):   Multiple Choice   The entire gain for any reason.   A ratio of the days owned divided by 730 days for any reason.   The entire gain on the second sale if the sale is due to health, employment reasons or unforeseen circumstances.   A ratio of the days owned divided by 730 days and only if the sale is due to health, employment reasons or unforeseen circumstances.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a second residence, he or she can exclude (up to $250,000 for a single taxpayer):

 

Multiple Choice
  •  

    The entire gain for any reason.

  •  

    A ratio of the days owned divided by 730 days for any reason.

  •  

    The entire gain on the second sale if the sale is due to health, employment reasons or unforeseen circumstances.

  •  

    A ratio of the days owned divided by 730 days and only if the sale is due to health, employment reasons or unforeseen circumstances.

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