If the Threat of Condemnation Exists and the Taxpayer Has

question 70

True/False

If the threat of condemnation exists and the taxpayer has reasonable grounds to believe that the property will be condemned,the taxpayer may elect to defer gain even if the taxpayer sells the property to a party other than the governmental unit that is threatening to condemn the property.

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Definitions:

Unit Value

The worth assigned to a single unit of an item, used to calculate cost, quantity, or other statistical measures.

Fraction

A mathematical expression representing a part of a whole, displayed as a numerator over a denominator.

Percentage

A numerical value representing a part of 100, signaled by a fraction or ratio.

Subtract

To take away a number or amount from another, leaving a difference.