Which of the Following Statements Regarding Involuntary Conversions Is Incorrect

question 54

Multiple Choice

Which of the following statements regarding involuntary conversions is incorrect?

• A)With some exceptions,the replacement property must be similar or related in service or use to the property converted.
• B)The functional-use test is more restrictive than the like-kind test.
• C)The taxpayer-use test applies to the involuntary conversion of rental property owned by an investor.
• D)Real property used in a trade or business that is condemned must be replaced with property which has the same functional use as the converted property.