If the Taxpayer Qualifies Under § 1033 (Nonrecognition of Gain

question 59

Multiple Choice

If the taxpayer qualifies under § 1033 (nonrecognition of gain from an involuntary conversion) , makes the appropriate election, and the amount reinvested in replacement property is less than the amount realized, realized gain is:

• A) Recognized to the extent of the deficiency (amount realized not reinvested).
• B) Recognized to the extent of realized gain.
• C) Recognized to the extent of the amount reinvested in excess of the adjusted basis.
• D) Permanently not subject to taxation.
• E) None of the above.

---

Definitions:

Biomedical Therapy

A type of therapy that involves medication and/or medical procedures to treat psychological disorders.

Deep Brain Stimulation

A neurosurgical procedure that involves implanting electrodes in the brain to send electrical impulses to specific areas.

Electroconvulsive Therapy

A mental health therapy that entails the induction of seizures through electrical stimulation to alleviate psychiatric conditions.

Electrodes

Conductive pads or probes used to detect electrical signals in scientific research, medical monitoring, or therapeutic interventions.