If Insurance Proceeds Are Received for Property Used in a Trade

question 79

True/False

If insurance proceeds are received for property used in a trade or business, a casualty transaction can result in recognized gain but cannot result in a recognized loss.

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Definitions:

Tetrapods

Vertebrates with four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.

Ray-Finned Fishes

A diverse group of fishes known for their fins which are supported by long, bony rods arranged in a ray pattern.

Vertebrate Jaw

A structural feature found in vertebrates that is composed of bony or cartilaginous structures surrounding the mouth, utilized for biting, chewing, and manipulation of food.

Amphibians

A class of cold-blooded vertebrates that live both in water and on land, such as frogs and salamanders.