If the Taxpayer Qualifies Under § 1033 (Nonrecognition of Gain

question 16

Multiple Choice

If the taxpayer qualifies under § 1033 (nonrecognition of gain from an involuntary conversion) , makes the appropriate election, and the amount reinvested in replacement property is less than the amount realized, realized gain is:

• A)Recognized to the extent of the deficiency (amount realized not reinvested).
• B)Recognized to the extent of realized gain.
• C)Recognized to the extent of the amount reinvested in excess of the adjusted basis.
• D)Permanently not subject to taxation.

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