Which of the Following Statements Is Correct for a §

question 27

Multiple Choice

Which of the following statements is correct for a § 1033 involuntary conversion of an office building destroyed by fire?

• A)An election can be made to postpone gain on a § 1033 involuntary conversion only if the proceeds received are reinvested in qualifying property no later than two years after the end of the tax year in which a proceeds inflow is received that is large enough to produce a realized gain.
• B)The postponement of realized gain in a § 1033 involuntary conversion is elective.
• C)The functional use test is satisfied if a business warehouse is replaced with another business warehouse.
• D)The taxpayer use test is satisfied if a shopping mall rented to tenants is replaced with an office building to be rented to tenants.
• E)All of these are correct.

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Definitions:

Land

The part of the earth's surface that is not covered by water, including properties, territories, and physical features.

Duke of Northumberland

A title in the peerage of England, historically associated with several notable individuals, often playing significant roles in political and military affairs of the country.

Lady Jane Grey

Known as the "Nine Days' Queen," she was an English noblewoman who occupied the English throne in July 1553 until her removal and subsequent execution.

Edward VI

The King of England and Ireland from 1547 until his death in 1553, known for his Protestant views.