On an Involuntary Conversion in Which the Taxpayer Does Not

question 48

Multiple Choice

On an involuntary conversion in which the taxpayer does not buy replacement property within the replacement period,the gain on the involuntary conversion and any tax due must be reported:

• A)In the year the replacement period expires.
• B)In the year the involuntary conversion occurred.
• C)Never,because the tax year of the conversion would be closed.
• D)As soon as the taxpayer knows replacement property will not be purchased.

---

Definitions:

Palmar Reflex

An involuntary response observed in infants, where the hand closes into a fist when the palm is touched, typically disappearing by 5-6 months of age.

Voluntary Grasping

An intentional act of seizing or holding onto an object using the hands or fingers, often seen as a developmental milestone in infants.

Brazelton Neonatal Behavioral Assessment Scale

A measure of a newborn’s motor behavior, response to stress, adaptive behavior, and control over physiological state.

Adaptive Behavior

The collection of conceptual, social, and practical skills that people have learned to be able to function in their everyday lives.