Which of the following statements is true?
A)A taxpayer's personal residence qualifies for a like-kind exchange.
B)A taxpayer who sells a personal residence may always exclude the realized gain from taxable income.
C)A one-time election is available to taxpayers 55 years of age or older which allows them to sell their personal residences and to exclude all of the realized gain.
D)None of the above are true.
E)All of these

Question

Quizplus · Accepted Answer

None of the statements are completely true. A taxpayer's personal residence does not qualify for a like-kind exchange, but may be eligible for the exclusion of realized gain under certain circumstances. The exclusion of realized gain from the sale of a personal residence is subject to various eligibility requirements and limitations, and the one-time election for taxpayers 55 years of age or older only allows for a higher exclusion amount, not a complete exclusion of realized gain.

Which of the Following Statements Is True