Which of the following statements are true with respect to the sale of a principal residence?
A) A one life-time exclusion of $125,000 is allowed for taxpayers under age 55
B) All of the gains from the sale need not be used to purchase another residence
C) The original cost basis is adjusted to include all costs related to the improvement of the property i.e. selling, remodeling, landscaping, etc.)
D) Loss of a sale of residence is fully deductible
E) B and C only
Correct Answer:
Verified
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