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:

Overestimate

To assess a quantity or value too high in relation to its actual value.

Feel-Good,Do-Good Phenomenon

The observation that people are more likely to help others when they are in a good mood themselves.

Healthy Grandson

Indicates a male grandchild who is in a state of good physical and mental health.

Generous Sum

A reference to a notably large amount of money or resources given or received.