Which of the Following Statements Is Incorrect for a §

question 135

Multiple Choice

Which of the following statements is incorrect for a § 1033 involuntary conversion?

• 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 date of the involuntary conversion.
• 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:

Worksheet

A single page in spreadsheet programs like Microsoft Excel, used for organizing and calculating data.

Merging Cells

Combining two or more adjacent cells into a single cell, often in a spreadsheet or table.

Splitting

The act of dividing or partitioning data, text, or objects into separate parts or sections.

Environmental Waste

Materials or substances that are discarded after use and are considered to be harmful to the environment.