If a taxpayer excludes the gain on the sale of his personal residence and,within two years,sells a second residence,he or she can exclude up to $250,000 for a single taxpayer):

Question

Quizplus · Accepted Answer

According to IRS rules, if a taxpayer excludes the gain on the sale of their personal residence and sells a second residence within two years, they can exclude up to $250,000 for a single taxpayer. However, in order to qualify for the exclusion, the taxpayer must have sold the second home due to health, employment, or unforeseen circumstances. The amount that can be excluded is calculated as a ratio of the days owned divided by 730 days. Therefore, choice C is the best option.

If a Taxpayer Excludes the Gain on the Sale of His