The Taxpayer-Use Test for Qualifying Replacement Property

question 38

Multiple Choice

The taxpayer-use test for qualifying replacement property

• A)applies only to personalty
• B)requires replacement property used by the taxpayer to be used in the same business as the converted property
• C)only requires leased realty to be replaced with other leased realty
• D)Is more restrictive than the functional-use test

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Definitions:

Papule

A small, raised, and solid pimple or swelling on the skin that does not contain pus.

Rocky Mountain Spotted Fever

A bacterial disease spread by ticks, characterized by fever, headache, muscle pain, and a characteristic rash.

Tick

A small arachnid that feeds on the blood of mammals, birds, and sometimes reptiles and amphibians, known for transmitting diseases such as Lyme disease.

Warts

Small, rough growths on the skin, typically caused by the human papillomavirus (HPV).