If the Taxpayer Qualifies Under § 1033 (Nonrecognition of Gain

question 257

Multiple Choice

If the taxpayer qualifies under § 1033 (nonrecognition of gain from an involuntary conversion) and the amount reinvested in replacement property exceeds the amount realized, the basis of the replacement property is:

• A) The cost of the replacement property.
• B) The fair market value of the involuntarily converted property minus the postponed gain.
• C) The cost of the replacement property minus the postponed gain.
• D) The amount realized.
• E) None of the above.

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