If There Is an Involuntary Conversion (I

question 118

True/False

If there is an involuntary conversion (i.e., casualty, theft, or condemnation) of the taxpayer's principal residence, the realized gain may be postponed as a § 1033 involuntary conversion and/or excluded as a § 121 sale of a principal residence.

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Definitions:

Limited Resources

The finite availability of resources, such as land, labor, and capital, which can restrict economic growth and development.

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.

Financial Capital

The money, credit, and other forms of funding that businesses use to invest in resources for future growth.