In order to be eligible to exclude gain on the sale of a principal residence, the taxpayer must meet which of the following test(s)?

Question

Quizplus · Accepted Answer

To be eligible to exclude gain on the sale of a principal residence, the taxpayer must meet both the ownership and use tests. The ownership test requires the taxpayer to have owned the property for at least two out of the preceding five years, while the use test requires the taxpayer to have used the property as their main home for at least two out of the five years before the sale.

In Order to Be Eligible to Exclude Gain on the Sale