The Deferral of a Gain Realized on an Involuntary Conversion

question 54

True/False

The deferral of a gain realized on an involuntary conversion is mandatory.

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Definitions:

Lost Property

Items that are unintentionally left by their owner at a place where they are not likely to be found.

Mislaid Property

Property that is intentionally placed somewhere but then forgotten by the owner.

Abandoned Property

refers to assets left by an owner who has no intention of returning to claim ownership.

Real Property

An area of law that deals with land and anything permanently affixed to the land, like buildings, which has stark distinctions from personal property.