Under the Taxpayer-Use Test for a § 1033 Involuntary Conversion

question 154

True/False

Under the taxpayer-use test for a § 1033 involuntary conversion, the taxpayer has less flexibility in qualifying replacement property than under the functional-use test.

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Definitions:

Size Range

The spectrum or distribution of sizes for particles, objects, or phenomena, from the smallest to the largest.

Clasts

Pieces of rock or mineral fragments that are broken off from their parent source and are used in the creation of sedimentary rocks through the process of lithification.

Sedimentary Rocks

Rocks formed by the accumulation or deposition of mineral or organic particles at the Earth's surface, followed by compaction and cementation.

Conglomerate

A coarse-grained clastic sedimentary rock composed of rounded to sub-rounded clasts (pebbles, cobbles, and boulders) in a fine-grained matrix of sand and mud.