Jared, a Fiscal Year Taxpayer with a August 31 Year-End

question 65

Multiple Choice

Jared, a fiscal year taxpayer with a August 31 year-end, owns an office building (adjusted basis of $800,000) that was destroyed by fire on December 24, 2019.If the insurance settlement was $950,000 (received March 1, 2020) , what is the latest date that Jared can replace the office building in order to qualify for § 1033 nonrecognition of gain?

• A)December 31, 2019.
• B)August 31, 2020.
• C)December 31, 2021.
• D)August 31, 2022.

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Definitions:

Non-leadership

Describes roles or behaviors within a group or organization that do not involve leading others, focusing instead on individual contributions or following directives.

Relational Interaction

The dynamic process of communication and connection between individuals or groups, influencing relationships and social structures.

Common Goals

Objectives or targets that are shared among members of a group or team, fostering unity and collaborative efforts towards achievement.

Social Identity Theory

A psychological theory positing that individuals' self-concepts are partially derived from perceived membership in social groups, influencing intergroup behaviors.