Which of the following statements is false with regard to the ownership and use tests under Sec.121?
A)The taxpayer must be occupying the residence at the time of the sale in order for Sec.121 to apply.
B)If a principal residence is sold before satisfying the ownership and use tests,part of the gain may be excluded if the sale is due to a change in employment,health,or unforeseen circumstances.
C)For purposes of the two-year ownership rule,a taxpayer's period of ownership includes the period during which the taxpayer's deceased spouse owned the residence.
D)When a taxpayer receives a residence from a spouse or an ex-spouse incident to a divorce,the taxpayer's period of owning the property includes the time the residence was owned by the spouse or ex-spouse.

Question

Quizplus · Accepted Answer

The ownership and use tests under Sec.121 require that the taxpayer own and use the property as their principal residence for at least two out of the five years prior to the sale. However, the taxpayer does not need to be occupying the residence at the time of the sale in order for Sec.121 to apply.

Which of the Following Statements Is False with Regard to the Ownership