Question

At most, a taxpayer is allowed to exclude gain on the sale of a principal residence once every five years no matter the circumstances?

Answer 1

No, a taxpayer can exclude gain on the sale of a principal residence once every two years, not once every five years.

Step-by-step explanation:

No, the statement is not completely accurate. According to tax laws in the United States, a taxpayer is allowed to exclude gain on the sale of a principal residence under certain circumstances. The IRS allows a taxpayer to exclude up to $250,000 of gain ($500,000 if married filing jointly) if the taxpayer meets certain ownership and use requirements. However, the taxpayer can only claim this exclusion once every two years, not once every five years.