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FINANCIAL ACCOUNTING
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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To qualify for exclusion treatment on the sale of a principal residence, the residence must have been owned and used by the taxpayer for at least 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 § 121 which is multiplied ✓by a fraction, the numerator of which is the number of qualifying months and the denominator of which is months. The result is the maximum amount of excluded ✓gain. The relief provision applies when the failure to meet the two-year ownership and occupancy requirement results from employment, health, or other unforeseen circumstances as defined in the Regulations ✓.
Transcribed Image Text:To qualify for exclusion treatment on the sale of a principal residence, the residence must have been owned and used by the taxpayer for at least 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 § 121 which is multiplied ✓by a fraction, the numerator of which is the number of qualifying months and the denominator of which is months. The result is the maximum amount of excluded ✓gain. The relief provision applies when the failure to meet the two-year ownership and occupancy requirement results from employment, health, or other unforeseen circumstances as defined in the Regulations ✓.
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