Jared, a Fiscal Year Taxpayer with a August 31st Year-End

question 56

Multiple Choice

Jared, a fiscal year taxpayer with a August 31st year-end, owns an office building (adjusted basis of $800,000) that was destroyed by fire on December 24, 2018. If the insurance settlement was $950,000 (received March 1, 2019) , what is the latest date that Jared can replace the office building in order to qualify for § 1033 nonrecognition of gain?

• A) December 31, 2018.
• B) August 31, 2019.
• C) December 31, 2020.
• D) August 31, 2021.
• E) None of the above.

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Definitions:

Choanoflagellates

Flagellated heterotrophic protists closely related to animals.

Collar

In the context of biology, often refers to a region or structure that encircles another, but without additional context, the term is overly broad.

Flagellum

Long, slender cellular structure used for motility.

Eukaryote

Single- or multicelled organism whose cells characteristically have a nucleus; a protist, fungus, plant, or animal.