Which of the following rules regarding the tax treatment of a principal residence is false?...
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Accounting
Which of the following rules regarding the tax treatment of a principal residence is false? If a taxpayer only owns one residence, the 'principal residence formula' reduces any capital gain on the sale to nil. A capital loss cannot be realized on the sale of a principal residence A properties owned solely by one spouse may transfer the property to the other spouse as a principal residence, where the transferee spouse (ie spouse receiving the house) is deemed to have owned the property since the transferor spouse originally acquired it. The principal residence exemption is denied when the disposition is not reported on your personal tax return in the taxation year of sale
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