Certified Relocation Professional (CRP) Practice Exam

Which of the following statements is true regarding IRS Rev. Rule 2005-74?

1. The Ruling was made only on the Amended Value Homesale program

2. Dual Deeds are required

3. All Homesale programs require inspections

4. All of the above

The correct answer is: The Ruling was made only on the Amended Value Homesale program

The correct answer is that the ruling specifically addresses the Amended Value Homesale program. IRS Rev. Rule 2005-74 provides guidance on how the Amended Value Homesale program operates within the context of the tax implications for relocating employees. This program is designed so that employees do not have to report any gains as taxable income when an employer provides a guaranteed buyout price for a home, leading to potential tax benefits for the relocating employee. Understanding that this ruling pertains specifically to the Amended Value Homesale program is key, as it clarifies how certain practices related to home sales during relocations are treated under IRS guidelines. The other statements about dual deeds being required and inspections being necessary for all homesale programs are not accurate reflections of the ruling's content, as the ruling focuses explicitly on value determination in the context of employee relocations rather than the general requirements that apply to all homesale programs.