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

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

A) If a taxpayer sells the only home they have ever owned for a gain, the capital gain on the sale is nil.
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) 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.
D) A capital loss cannot be realized on the sale of a principal residence.