Which of the following is a rule related to the exclusion of gain on the sale of

Question

Which of the following is a rule related to the exclusion of gain on the sale of a personal residence?

In general, to exclude the gain from the sale of a personal residence, the home must be used as a personal residence within the last 3 years.

The gain exclusion is either $250,000 ($500,000 if married) or nothing.

If the taxpayer has not used and owned the house for the designated time, then the taxpayer may still qualify if he/she had unforeseen circumstances. Unforeseen circumstances include divorce, multiple births, and inability to pay the mortgage due to a change in employment.

After May 6, 1997, a taxpayer may exclude $125,000 of the gain if they are over the age of 55.

In general, to exclude the gain from the sale of a personal residence, the home must be used as a personal residence within the last 3 years.

The gain exclusion is either $250,000 ($500,000 if married) or nothing.

If the taxpayer has not used and owned the house for the designated time, then the taxpayer may still qualify if he/she had unforeseen circumstances. Unforeseen circumstances include divorce, multiple births, and inability to pay the mortgage due to a change in employment.

After May 6, 1997, a taxpayer may exclude $125,000 of the gain if they are over the age of 55.

Explanation / Answer

Rule - B is correct

i.e., the gain exclusion is either $250000 or $500000 if married and filing return jointly

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