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

Which of the following statements regarding a taxpayer's principal residence is true for 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 these statements is true.


Answer: B


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