Sidney,a Calendar Year Taxpayer,owns a Building (Adjusted Basis $450,000)in Columbus,OH,in

question 94

True/False

Sidney,a calendar year taxpayer,owns a building (adjusted basis $450,000)in Columbus,OH,in which he conducts his retail computer sales business.The building is destroyed by fire on December 12,2014,and two weeks later he receives insurance proceeds of $600,000.Due to family ties,Sidney decides to move to Columbia,SC.He reinvests all of the insurance proceeds in a building in Columbia where he opens a retail computer sales business on April 2,2015.By electing § 1033,Sidney has no recognized gain and a basis in the new building of $450,000 ($600,000 cost - $150,000 postponed gain).

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Definitions:

Coniferous Forest

A biome characterized by evergreen trees with needles and cones, often found in cooler northern latitudes.

Natural Grassland

Ecosystems dominated by grasses and other non-woody plants, often subject to periodic fires and grazing.

Annual Precipitation

The total amount of rain, snow, sleet, or hail that falls in a geographic area over a year.

Drought

A prolonged period of abnormally low rainfall, leading to a shortage of water and affecting crops, livestock, and human populations.