Sidney,a Calendar Year Taxpayer,owns a Building in Columbus,OH,in Which He

question 141

True/False

Sidney,a calendar year taxpayer,owns a building in Columbus,OH,in which he conducts his retail computer sales business.The building is destroyed by fire on December 12,2013,and two weeks later he receives insurance proceeds of $600,000.Due to family ties,Sidney decides to move to Columbia,SC.He reinvests all of the insurance proceeds in a building in Columbia where he opens a retail computer sales business on April 2,2014.By electing § 1033,Sidney has no recognized gain and a basis in the new building of $450,000 ($600,000 cost - $150,000 postponed gain).

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Definitions:

Indenture

A legal agreement, contract, or document, especially one that binds an apprentice to a master.

Planters' Need

Historically refers to the demand for labor, often fulfilled through enslavement, by those owning large agricultural estates, especially in the context of American southern plantations.

Internal Genitalia

The reproductive organs located inside the body, such as the uterus, ovaries in females, and the prostate and testes in males.

Bimanual

Involving or requiring the use of both hands, often used in medical examinations and procedures.