Which of the following statements is correct for a § 1033 involuntary conversion of an office building 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 these are correct.

Question

Quizplus · Accepted Answer

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. This statement is correct.
B) The postponement of realized gain in a § 1033 involuntary conversion is elective. This statement is correct.
C) The functional use test is satisfied if a business warehouse is replaced with another business warehouse. This statement is correct.
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. This statement is correct.
Therefore, all the given statements are correct.

Which of the Following Statements Is Correct for a §