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.

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Definitions:

Stressor

Any biological, chemical, physical, or psychological factor that causes stress or strain to an organism.

Sensor

In homeostasis, a receptor that detects a change (i.e., a deviation from the homeostatic state).

Effector

A molecule, cell, or organ that actively responds to a stimulus and brings about an effect or change as a result.

Ectothermic Animals

Organisms that regulate their body temperature through external sources, unable to internally maintain a constant body temperature.