To receive the most favorable capital gains treatment,a taxpayer must own and occupy a home for at least two of the five years prior to its sale.

Question

Quizplus · Accepted Answer

This is true. According to the Internal Revenue Service (IRS), in order to receive the most favorable capital gains treatment, a taxpayer must have owned and occupied a home for at least two of the five years prior to its sale. If they meet this requirement, they can exclude up to $250,000 of capital gains from the sale if they are single, and up to $500,000 if they are married filing jointly.

To Receive the Most Favorable Capital Gains Treatment,a Taxpayer Must