Question: Which of the following best describes the general rule for exclusion of the gain on the sale of a principal residence by a single taxpayer? ANSWER Unselected A single taxpayer may exclude up to $250,000 of gain on the sale of her principal residence if the property was owned and occupied as a principal residence two years prior to the sale. Unselected A single taxpayer may exclude up to $250,000 of gain on the sale of her principal residence if the proceeds are reinvested in a property with a FMV equal or greater than the FMV of the prior residence. Unselected A single taxpayer may exclude up to $250,000 of gain on the sale of her principal residence if the property was owned and occupied as a principal residence for at least two years of the five-year period before the sale. Unselected A single taxpayer may exclude up to $250,000 of gain on the sale of her principal residence one time after the age of 55 years.