Which of the Following Statements Is Correct for a §

question 242

Multiple Choice

Which of the following statements is correct for a § 1033 involuntary conversion of an office building which is destroyed by fire?

• A) An election can be made to postpone gain on a § 1033 involuntary conversion only if the proceeds received are reinvested in qualifying property no later than two years after the end of the tax year in which a proceeds inflow is received that is large enough to produce a realized gain.
• B) The postponement of realized gain in a § 1033 involuntary conversion is elective.
• C) The functional use test is satisfied if a business warehouse is replaced with another business warehouse.
• D) The taxpayer use test is satisfied if a shopping mall rented to tenants is replaced with an office building to be rented to tenants.
• E) All of the above are correct.

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Definitions:

Connective(s)

Logical operators in propositional logic that combine one or more propositions to form a logical statement.

Combustible Material

Any material that can ignite and burn, either freely or under specific conditions.

Kindling Point

The temperature at which a material ignites and starts burning.

Symbolic Form

A representation of statements or propositions using symbols to make logical relationships more clear.