To qualify for exclusion treatment on the sale of a principal residence, the residence must have been owned and used by the taxpayer for atleast two years during the five-year period ending on the date of the sale. Are there any exceptions to this provision?✔. Under this code section, the exclusion amount for a taxpayer filing single is $There is an exception under § 121which is multiplied✓by a fraction, the numerator of which is the number of qualifying months and the denominator of which ismonths. The result is the maximum amount of excluded ✓gain. The relief provision applies when the failure tomeet the two-year ownership and occupancy requirement resultsfrom employment, health, or other unforeseen circumstances as defined in the Regulations✓.

The “principal residence exclusion” granted by Internal Revenue Code (IRC) section 121, which…

Answered: o qualify for

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 25DQ

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For periods of time beginning after December 31, 2008, which of the following is most likely to be considered a period of non qualified use for which the exclusion of gain on the sale of a principal residence does not apply? A. A period of one year which the taxpayer was temporarily absent due to a medical conditionsl. B. A period of three years during which the taxpayers spouse was absent due to marital problems. C. A period of one year during which the taxpayer was temporarily absent due to a change in employment. D. A period of five years during which the taxpayers spouse was serving on qualified official extended duty.
If during the year, a taxpayer voluntarily opted to pay VAT even though his sales and receipts are not expected to exceed P3M. Can he revoke his registration the following year opts to pay decides that he wants revert back as percentage taxpayer? Explain your answer.
Proceeds of sale of real property classified as principal residence and capital asset are exempt from the 6% capital gains tax of used to build or buy a new principal residence within 18 months from the date of sale or disposition.Gain from sale of real property classified as capital asset to the Government may be taxed under Sec. 24A or capital gains tax at the option of the individual taxpayer. False, True False, False True, False True, True
A taxpayer is presumed a resident if they live within the state for an aggregate of how many months? Select one: a. Three (3) months b. Six (6) months c. Nine (9) months d. There is no presumption
A taxpayer has unutilized or excess Creditable Withholding Taxes (CWT) for the taxable year The taxpayer has collected its CWT certificates or BIR Form 2307 from its income payors/customers. What are the options of the taxpayer in relation to its unutilized or excess CWT?
Under what circumstances, if any, can a married person file as a head of household? A. A married person, if otherwise qualified, can claim head of household status only in the first year that he or she can be classified as a surviving spouse. The taxpayer must maintain a household for at least nine months of the year. OB. A married person, if otherwise qualified, can claim head of household status if he or she is married to a nonresident alien or if he or she qualifies as an abandoned spouse. To be an abandoned spouse, the person must have lived apart from his or spouse for the last six months of the year and maintain a household for a qualifying child in which they both live. OC. A married person, cannot claim head of household status, this status is only for single taxpayer that maintain a household for a qualifying child in which they both live. O D. A married person, if otherwise qualified, can claim head of household status only if he or she qualifies as an abandoned spouse. To be…
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Mark each statement below as either "True" or "False" regarding the standard deduction and itemized deductions. a. The standard deduction is an amount that varies with filing status. b. A taxpayer should claim the smaller of the standard deduction or the total allowed itemized deductions. c. Total itemized deductions depend on the amount and type of items, with some items having limitations based on AGI. d. Taxpayers who are 65 years of age or older or blind are entitled to an additional itemized deduction amount.
If Bailey, who files single, qualifies for the real estate rental exception, the maximum deduction is reduced if his AGI exceeds the threshold. The reduction is equal to of AGI in excess of $fill in the blank 8. The deduction will be phased out completely if AGI reaches $fill in the blank 9.
If the taxpayer materially participated in an activity for any __5_ of the _10__taxable years that immediately precede the current taxable year, the taxpayer is treated as so participating during the current taxable year as well. Explain this sentence.
Carey, a single taxpayer, purchased a rental house in 2021, which he actively manages. During 2021, Carey had a loss of $14,000 from the rental house. If Carey's adjusted gross income for 2021 is $138,000 before the rental loss, what is the amount of Carey's allowable deduction for the rental activity for 2021? a.$0 b.$3,000 c.$6,000 d.$12,000 e.None of these choices are correct.

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