Which of the Following Statements Is False Regarding Involuntary Conversions

question 45

Multiple Choice

Which of the following statements is false regarding involuntary conversions?

• A)A taxpayer must replace the destroyed property within the same tax year in which the gain is realized.
• B)A taxpayer cannot elect to defer recognition of a loss resulting from an involuntary conversion.
• C)If deferral of gain is elected,the holding period of the converted property carries over to the replacement property.
• D)Gain may be deferred if the property is involuntarily converted into property that is similar or related in service or use to the converted property.

---

Definitions:

Freedom of Individuals

The right of people to make their own choices and decisions without undue restrictions from government or society.

Personality Theories

Frameworks and models that attempt to explain the patterns of thoughts, feelings, and behaviors that make up an individual's personality.

Free Will

The ability of individuals to make choices that are not determined by prior causes or by divine intervention, often debated in philosophy and psychology.

Rollo May

An American existential psychologist who emphasized the importance of anxiety as a condition of living and the role of existential crisis in personal growth.