The Tax Law Allows,under Certain Conditions,deferral of Gain Recognition for Involuntary

question 143

Essay

The tax law allows,under certain conditions,deferral of gain recognition for involuntary conversions.
a. What is the justification for this relief measure?
b. What happens if the proceeds are not entirely reinvested?

---

Definitions:

Displays Resiliency

Exhibiting the capacity to recover quickly from difficulties or adapt effectively in the face of adversity.

Intellectualization

A defense mechanism where reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress, focusing instead on abstract and intellectual thought.

Oppositional Defiant Disorder (ODD)

A behavioral disorder in children and adolescents characterized by a persistent pattern of angry or irritable mood, argumentative/defiant behavior, and vindictiveness.

Conduct Disorder (CD)

A psychological condition identified during childhood or adolescence, marked by a continuous trend of aggressive and destructive actions.