Which of the following is true of the exclusion of gain under § 121?
A)The taxpayer (or spouse) must be 55 years of age or older on the date of sale of the principal residence in order to apply the exclusion.
B)The residence must have been used as a principal residence by the owner/taxpayer (or spouse) for at least two years within the five-year period ending on the date of sale.
C)The exclusion is elective but may not be revoked.
D)The exclusion may be used only once by a taxpayer.

Question

Quizplus · Accepted Answer

The exclusion under § 121 allows taxpayers to exclude up to $250,000 of gain ($500,000 for married couples filing jointly) on the sale of their principal residence. To qualify for the exclusion, the taxpayer (or spouse) must have owned and used the residence as their principal residence for at least two years during the five-year period ending on the date of sale. There is no age requirement for this exclusion, and it can be used more than once but only once every two years.

Which of the Following Is True of the Exclusion of Gain