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Which of the Following Rules Regarding the Tax Treatment of a Principal

Question 10

Multiple Choice

Which of the following rules regarding the tax treatment of a principal residence is FALSE?


A) Properties can be designated to each married or common-law partner in a family for the purpose of reducing the gains on the sale of two principal residences.
B) When a taxpayer owns more than one residence, the decision to designate a particular property as the 'principal residence' occurs at the time of sale.
C) If a taxpayer only owns one residence, the 'principal residence formula' reduces any capital gain on the sale to nil.
D) A capital loss cannot be realized on the sale of a principal residence.

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