Under IRS Section 121 Exclusion (Home Sale Exclusion Rule):
Married couples filing jointly can exclude up to $500,000 of capital gains.
They must have owned and occupied the property as their primary residence for 2 of the past 5 years.
Age 65 requirement is obsolete (repealed).
They don’t need to reinvest in another home.
The exclusion can be used once every 2 years.
Correct answer = D.
[Reference: Internal Revenue Code §121; NJ Real Estate Salesperson Study Guide, Chapter on Taxation., ]
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