If a Taxpayer Reinvests the Net Proceeds (Amount Received -

question 76

True/False

If a taxpayer reinvests the net proceeds (amount received - related expenses) received in an involuntary conversion in qualifying replacement property within the statutory time period, it is possible to defer the recognition of the realized gain.

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Definitions:

Suffix

An addition to the end of a term that changes the grammatical function of the term.

Prefix

A word component added to the beginning of a word root or combining form that typically modifies the remaining part of the term.

Word Root

A component of a medical term that does not have a combining form vowel attached.

Combining Form

In linguistics and grammar, a form or morpheme that combines with another to create a new word or to add to its meaning.