Each of the Following Is True of Deferral of Gain

question 3

Multiple Choice

Each of the following is true of deferral of gain attributable to the involuntary conversion of personal property with the exception of

• A)gain deferral is elective,except for direct conversions.
• B)the replacement property may be acquired by gift,inheritance,or purchase.
• C)qualifying replacement property must be acquired within a specified time period.
• D)replacement property must be similar or related in service or use to the converted property.

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Definitions:

Environmental Dangerous

Refers to situations or conditions that pose a threat to ecological balance or public health.

Toxic Dumps

Sites where hazardous waste is disposed of, often illegally, posing significant environmental and health risks.

Tornado Disasters

Severe weather events characterized by rapidly rotating columns of air that cause significant damage and loss of life.

Trailer Parks

A residential area where mobile homes are placed and inhabited, often characterized by lower rental or ownership costs.