Which of the following statements is false with regard to the ownership and use tests under Sec.121?

A.

When a taxpayer receives a residence from a spouse or an exspouse incident to adivorce, thetaxpayer's period of owning the property includes the time the residence was owned by the spouse or exspouse.

B.

The taxpayer must be occupying the residence at the time of the sale in order for Sec. 121 to apply.

C.

If a principal residence is sold before satisfying the ownership and usetests, part of the gain may be excluded if the sale is due to a change inemployment, health, or unforeseen circumstances.

D.

For purposes of the twoyear ownershiprule, ataxpayer's period of ownership includes the period during which thetaxpayer's deceased spouse owned the residence.