Which of the Following Statements Is Correct for a §

question 242

Multiple Choice

Which of the following statements is correct for a § 1033 involuntary conversion of an office building which is destroyed by fire?

• A) An election can be made to postpone gain on a § 1033 involuntary conversion only if the proceeds received are reinvested in qualifying property no later than two years after the end of the tax year in which a proceeds inflow is received that is large enough to produce a realized gain.
• B) The postponement of realized gain in a § 1033 involuntary conversion is elective.
• C) The functional use test is satisfied if a business warehouse is replaced with another business warehouse.
• D) The taxpayer use test is satisfied if a shopping mall rented to tenants is replaced with an office building to be rented to tenants.
• E) All of the above are correct.

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Definitions:

Private Archival Material

Documents, records, and other materials that are privately held and not publicly accessible, often of historical significance.

Social Roles

Expected behaviors, rights, obligations, responsibilities, and privileges associated with a person's position in society.

Physical Erosion

The process by which earth's surface is worn away by natural forces such as water, wind, and ice.

Tiles

Manufactured pieces of hard-wearing material such as ceramic, stone, or metal used for covering roofs, floors, walls, or other surfaces.