Dennis, a Calendar Year Taxpayer, Owns a Warehouse (Adjusted Basis

question 64

True/False

Dennis, a calendar year taxpayer, owns a warehouse (adjusted basis of $190,000) which is destroyed by a tornado in October 2017. He receives insurance proceeds of $250,000 in January 2018. If before 2021, Dennis replaces the warehouse with another warehouse costing at least $250,000, he can elect to postpone the recognition of any realized gain.

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Definitions:

Voltaic Pile

A group of voltaic cells connected together to form a battery.

Alessandro Volta

An Italian physicist known for inventing the battery in the 1800s, leading to the development of the first source of continuous electrical current.

Electricity

A form of energy resulting from the existence of charged particles, such as electrons or protons, either statically as an accumulation of charge or dynamically as a current.

Voltaic Cell

A device that converts chemical energy into electric energy.