Which of the Following Satisfy the Time Period Requirement for Postponement

question 59

Multiple Choice

Which of the following satisfy the time period requirement for postponement of gain as a § 1033 (nonrecognition of gain from an involuntary conversion) involuntary conversion?

• A)Al's business warehouse is destroyed by a tornado on October 31, 2012.Al is a calendar year taxpayer.He receives insurance proceeds on December 5, 2012.He reinvests the proceeds in another warehouse to be used in his business on December 29, 2014.
• B)Heather's personal residence is destroyed by fire on October 31, 2012.She is a calendar year taxpayer.She receives insurance proceeds on December 5, 2012.She purchases another principal residence with the proceeds on October 31, 2014.
• C)Mack's office building is condemned by the city as part of a road construction project.The date of the condemnation is October 31, 2012.He is a calendar year taxpayer.He receives condemnation proceeds from the city on that date.He purchases another office building with the proceeds on December 5, 2015.
• D)Lizzy's business automobile is destroyed in an accident on October 31, 2012.Lizzy is a fiscal year taxpayer with the fiscal year ending on June 30th.She receives insurance proceeds on December 5, 2012.She purchases another business automobile with the proceeds on June 1, 2015.
• E)All of the above.

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Definitions:

Service Department

A segment of a business that focuses on providing support and services to other internal departments or to the customers directly rather than producing goods.

Advertising Expense

The cost incurred by a company to promote its products or services through various advertising channels and methods.

Departmental Sales

Revenue generated from the sales activities of specific departments within a retail or corporate setting, tracked to evaluate the performance of each department.

Retail Store

A business establishment that sells goods or services directly to consumers, primarily for personal or household consumption.