Basics Intermediate: Tax Deductions for Selling Your Home

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1.
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.
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True. In certain circumstances, you can qualify.
2.
Unmarried people who jointly own a home do not qualify for the capital gain exclusion when they sell the home.
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False. Providing they each meet the "use" test, unmarried people who jointly own a home DO qualify for the exclusion.
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?
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2. This figure is an aggregate total.
4.
If you do not meet the use test for exclusion of capital gains on your home, can you receive a partial exclusion under any circumstances?
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Yes. You can receive a partial exclusion if you sell the house because of a change in employment, health, or other special circumstances, even if you do not meet the use test. For these circumstances, you can receive a portion of the exclusion based on the time of the two- year period you did live in the house.
5.
To determine how much you have gained or lost on your home when you sell it, you must subtract the _______ from the home's selling price.
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Cost basis. The cost basis is the true cost of the home. It includes the purchase price plus improvements and various expenses and depreciation.