Which of the Following Statements Concerning the Exclusion Available Under

Multiple Choice

Which of the following statements concerning the exclusion available under Section 121 for the sale of a personal residence is correct?

A) This provision allows 50% of the gain from sale of any residence to be excluded from income.
B) A vacation home used as a residence for at least five months of the year will qualify for this exclusion.
C) It is possible for taxpayers to sell their home and qualify for this exclusion every two years.
D) The gain on the sale can be deferred and rolled over into another residence instead of electing the exclusion.