Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
How much of a loss on your home can you deduct on your tax return?
Choose wisely. There is only one correct answer.
None of it. Unlike with other investments, you cannot deduct a loss on the sale of your home.
2.
If you live in your home for less time than two years before selling it, you can still qualify for some tax relief on any capital gains you make on the home.
Choose wisely. There is only one correct answer.
True. In certain circumstances, you can qualify.
3.
In order to qualify for the entire capital gain exclusion allowed on a home that you sell, you must have lived in it for a total of how many years?
Choose wisely. There is only one correct answer.
2. This figure is an aggregate total.
4.
Unmarried people who jointly own a home do not qualify for the capital gain exclusion when they sell the home.
Choose wisely. There is only one correct answer.
False. Providing they each meet the "use" test, unmarried people who jointly own a home DO qualify for the exclusion.
5.
The cost basis of your home includes more than just the price you paid for it.
Choose wisely. There is only one correct answer.
True. The cost basis includes many expenses beyond just the price you paid for it.