Sidney,a Calendar Year Taxpayer,owns a Building (Adjusted Basis $450,000)in Columbus,OH,in

question 15

True/False

Sidney,a calendar year taxpayer,owns a building (adjusted basis $450,000)in Columbus,OH,in which he conducts his retail computer sales business.The building is destroyed by fire on December 12,2016,and two weeks later he receives insurance proceeds of $600,000.Due to family ties,Sidney decides to move to Columbia,SC.He reinvests all of the insurance proceeds in a building in Columbia where he opens a retail computer sales business on April 2,2017.By electing § 1033,Sidney has no recognized gain and a basis in the new building of $450,000 ($600,000 cost - $150,000 postponed gain).

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Definitions:

Corporate Criminal Liability

The legal principle that a corporation, as an entity, can be held accountable for committing criminal acts.

Strict Liability Rule

A regulation imposing absolute responsibility on certain persons or entities for damages or losses, regardless of fault or intention.

Squeeze-Out

A strategy used by majority shareholders to pressure minority shareholders into selling their shares, often at unfavorable terms.

Minority Shareholder

An investor who owns less than 50% of a company's shares, typically having limited influence over corporate decisions.