If Property Is Involuntarily Converted into Similar Property,the Basis and Holding

question 35

True/False

If property is involuntarily converted into similar property,the basis and holding period of the converted property carry over to the basis and holding period of the replacement property.

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Definitions:

Express Conditions

Clearly stated stipulations in a contract that must be met for contractual obligations to be performed or for certain outcomes to take place.

Discharge

The completion, termination or nullification of a legal obligation or duty.

Obligations

Duties or responsibilities imposed by law, contract, or moral principals.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.