Dennis, a Calendar Year Taxpayer, Owns a Warehouse (Adjusted Basis

question 61

True/False

Dennis, a calendar year taxpayer, owns a warehouse (adjusted basis of $190,000) which is destroyed by a tornado in October 2018. He receives insurance proceeds of $250,000 in January 2019. If before 2021, Dennis replaces the warehouse with another warehouse costing at least $250,000, he can elect to postpone the recognition of any realized gain.

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Definitions:

Weld Symbol

A weld symbol is a set of standardized symbols used in blueprints and technical drawings to specify the type, size, and other details of a weld to be made on metal parts.

Member

A term often used in engineering to refer to an individual component of a structure, machine, or mechanism that serves a specific function.