Question "16 of 60 If flash flooding forces a property owner out of a residence for six months, whe entitled to the capital gain exclusion on the sale of the property? A) Yos, the owner qualifies for a portion of the exclusion, B) No, properties that exist in known floodplains, of which the owner is awa C) No, the owner would only qualify for capital gains exclusion for a second D) Yos, the owner may claim the full capital gains exclusion, Previous

To determine whether the property owner is entitled to the capital gain exclusion on the sale of the property after being forced out due to flash flooding, we need to consider the conditions under which capital gains exclusions apply. ### Known Conditions: 1. **Duration of Ownership and Use**: Generally, to qualify for the capital gains exclusion, the owner must have owned the property for at least two years and used it as their primary residence for at least two of the last five years before the sale. 2. **Nature of the Event**: The event causing the owner to leave (in this case, flash flooding) may impact their eligibility, but it does not automatically disqualify them if they meet the ownership and use requirements. ### Analyzing the Options: - **A) Yes, the owner qualifies for a portion of the exclusion**: This could be true if the owner meets the ownership and use requirements but was forced out due to flooding. - **B) No, properties that exist in known floodplains, of which the owner is aware**: This option suggests that being in a floodplain disqualifies the owner, which is not necessarily true. - **C) No, the owner would only qualify for capital gains exclusion for a second property**: This is misleading as the exclusion can apply to the primary residence regardless of the situation. - **D) Yes, the owner may claim the full capital gains exclusion**: This would be true if the owner meets the ownership and use requirements. ### Conclusion: If the property owner has owned and used the property as their primary residence for the required duration, they would likely qualify for the capital gains exclusion despite being forced out due to flooding. Thus, the most accurate answer is: **A) Yes, the owner qualifies for a portion of the exclusion.**