With an Involuntary Conversion,what Is the Time Limit to Purchase

question 2

Multiple Choice

With an involuntary conversion,what is the time limit to purchase replacement property?

• A)Two years from the conversion event.
• B)It ends two years after the close of the taxable year the gain is realized (three years for real property held for use in a trade or business,or investment that is condemned).
• C)There is no time limit.
• D)Five years from the conversion event.

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Definitions:

Lignin

A complex organic polymer deposited in the cell walls of many plants, making them rigid and woody, and contributing to the structural integrity of the plant.

Parenchyma Cells

Fundamental tissue composed of thin-walled cells that function in photosynthesis, storage, and as the bulk of ground and vascular tissues.

Starch Grains

Microscopic granules consisting of starch, stored as an energy reserve within the cells of plants, especially within tubers and seeds.

Oil Droplets

Tiny globules of oil, which can be found suspended in various colloids, including biological cells or in culinary emulsions.