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:

Long-Term Memory

Storage of virtually unlimited capacity that holds information for long periods.

Alzheimer Disease

A progressive neurological disorder characterized by memory loss, cognitive decline, and personality changes, primarily affecting older adults.

Restlessness

An uneasy or impatient state where one cannot remain at rest due to anxiety, boredom, or other emotional or physical factors.

Working Memory

Short-term storage of information being actively processed.