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7/32. Carol, a single taxpayer, purchased a home for $300,000. Because her employer relocated to a new city, Carol had to move to the new
7/32. Carol, a single taxpayer, purchased a home for $300,000. Because her employer relocated to a new city, Carol had to move to the new location to retain her job. She had lived in the home for 26 months when she sold the home for $350,000. Which of the following statements describing the tax ramifications of this transaction is CORRECT A. Carol has a $50,000 taxable gain. B. Carol can exclude the gain under Section 121. C. Carol's gain is nontaxable because the house is personal use property. D. The gain exclusion is unavailable because Carol has not lived in the home for 5 years
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