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

Which of the following statements is false with regard to the ownership and use tests under Sec. 121?

A) 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.
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) The taxpayer must be occupying the residence at the time of the sale in order for Sec. 121 to apply.
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.