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

Norah Mcconnell

6 October, 01:53

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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Chaya Rodgers · 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.