Asked by Guoiuo
Which of the following statements regarding the tax treatment of a...
Which of the following statements regarding the tax treatment of a principal residence is NOT correct?
|A. If a taxpayer owns two residences, and both are sold in the same year, the principal residence formula will eliminate the capital gain on only one of the residences.|
|B. If a taxpayer owns two residences, the decision to designate a particular property as the principal residence must be made when the residence is sold.|
|C. If a taxpayer owns only one residence, the principal residence formula will eliminate any capital gain on the sale.|
|D. A capital loss cannot be realized on the sale of a principal residence.|
During 2014, an individual sells a capital asset with an adjusted cost base of $122,000. The sales price is $187,000, with $40,000 of this amount being paid immediately. An additional $40,000 will be paid in 2015, with the $107,000 balance due in 2016. What is the maximum amount of the capital gains reserve that can be deducted for 2015?
Indicate which of the following is not listed personal property:
A. A stamp.
B. A rare manuscript.
C. An antique chair.
D. A piece of extremely valuable jewelry.
E. A piece of sculpture.
Answered by patelwriter
trices ac ma
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