Which of the Following Satisfy the Time Period Requirement for Postponement

question 153

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 31,2010.Al is a calendar year taxpayer.He receives insurance proceeds on December 5,2010.He reinvests the proceeds in another warehouse to be used in his business on December 29,2012.
• B)Heather's personal residence is destroyed by fire on October 31,2010.She is a calendar year taxpayer.She receives insurance proceeds on December 5,2010.She purchases another principal residence with the proceeds on October 31,2012.
• C)Mack's office building is condemned by the city as part of a road construction project.The date of the condemnation is October 31,2010.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 5,2013.
• D)Lizzy's business automobile is destroyed in an accident on October 31,2010.Lizzy is a fiscal year taxpayer with the fiscal year ending on June 30th.She receives insurance proceeds on December 5,2010.She purchases another business automobile with the proceeds on June 1,2013.
• E)All of the above.

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Definitions:

Golgi Complex

An organelle in eukaryotic cells involved in modifying, sorting, and packaging proteins and lipids for export or use within the cell.

Lysosome

A membrane-bound organelle found in most eukaryotic cells containing enzymes that digest macromolecules and defective cellular components.

Molecular Chaperones

Proteins that assist the folding or unfolding and the assembly or disassembly of other macromolecular structures, ensuring they attain or maintain the correct functional conformation.

ER Lumen

The internal space or cavity of the endoplasmic reticulum, a crucial cellular organelle involved in protein folding, modification, and transport.