Which of the following statements regarding a taxpayer's principal residence is true for the purposes of determining whether the taxpayer is eligible to exclude gain realized on the sale of the residence?

A) A taxpayer may have more than one principal residence at any one time. B) A taxpayer's principal residence may not be a houseboat. C) A taxpayer with more than one residence may annually elect which residence is considered to be the principal residence. D) None of the choices are true.

Question

Business

Jordyn Zuniga

12 August, 15:41

Which of the following statements regarding a taxpayer's principal residence is true for the purposes of determining whether the taxpayer is eligible to exclude gain realized on the sale of the residence?

A) A taxpayer may have more than one principal residence at any one time. B) A taxpayer's principal residence may not be a houseboat. C) A taxpayer with more than one residence may annually elect which residence is considered to be the principal residence. D) None of the choices are true.

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Answers (1)

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Iliana Lowery · Answer 1

The correct answer is D) None of the choices are true.

Explanation:

Residents in the United States and citizens of this country pay the tax for their worldwide income, that is, income earned anywhere in the world, while non-residents pay exclusively for income earned in the United States. There are several types of deductions that reduce the income tax.