A Taxpayer Whose Principal Residence Is Destroyed in a Fire

question 44

True/False

A taxpayer whose principal residence is destroyed in a fire can use both the § 121 (sale of residence gain exclusion) and the § 1033 (involuntary conversion postponement of gain) provisions.

---

Definitions:

Balanced Investment

An investment strategy that aims to balance risk and return by diversifying assets across different classes such as stocks, bonds, and cash.

Retirement

The phase of life where one ends their professional career or employment, usually due to age.

Employing Older Adults

The practice or action of hiring individuals who are beyond the typical age of retirement to work.

Positive Effects

Denotes beneficial outcomes or impacts of a certain interaction, condition, or intervention.