Each of the following is true of deferral of gain attributable to the involuntary conversion of personal property with the exception of
A)gain deferral is elective,except for direct conversions.
B)the replacement property may be acquired by gift,inheritance,or purchase.
C)qualifying replacement property must be acquired within a specified time period.
D)replacement property must be similar or related in service or use to the converted property.

Question

Quizplus · Accepted Answer

Replacement property must be acquired through purchase or construction, not by gift or inheritance, to qualify for gain deferral in involuntary conversions.

Each of the Following Is True of Deferral of Gain