Dennis, a Calendar Year Taxpayer, Owns a Warehouse (Adjusted Basis

question 64

True/False

Dennis, a calendar year taxpayer, owns a warehouse (adjusted basis of $190,000) which is destroyed by a tornado in October 2017. He receives insurance proceeds of $250,000 in January 2018. If before 2021, Dennis replaces the warehouse with another warehouse costing at least $250,000, he can elect to postpone the recognition of any realized gain.

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Definitions:

Astrocytes

Star-shaped glial cells in the brain and spinal cord involved in providing structural and metabolic support to neurons.

Unipolar

Refers to a type of neuron in which only one neurite extends from the cell body, commonly found in insects.

Multipolar

Referring to a type of neuron that has one axon and multiple dendrites, allowing for the integration of a lot of information from various sources.

Drastically Reduced

Significantly decreased or lessened in size, amount, or intensity in a very noticeable or extreme way.