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)?
A)Rental test.
B)Use test.
C)Ownership test.
D)Business use test.
E)Ownership and use test.

Question

Quizplus · Accepted Answer

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

In Order to Be Eligible to Exclude Gain on the Sale