22 which of the following satisfy the time period requirement for postponement o

Question

22 which of the following satisfy the time period requirement for postponement of gain as a § 1033 (nonrecognition of gain from an involuntary conversion) involuntary conversion? a. Al's business warehouse is destroyed by a tomado on October 31, 2015. Al is a calendar year taxpayer. He in another warehouse to be used in his business on December 29, 2017 b. Heather's personal residence is destroyed by fire on October 31, 2015. She is a calendar year taxpayer. She receives insurance proceeds on December 5, 2015. She purchases another principal residence with the proceeds on October 31, 2017. c. Mack's office building is condemned by the city as part of a road construction project. The date of the ndemnation is October 31, 2015. He is a calendar year taxpayer. He receives condemnation proceeds from the city on that date. He purchases another office building with the proceeds on December 5, 2018. d. Lizzy's business automobile is destroyed in an accident on October 31, 2015. Lizzy is a fiscal year taxpayer with the fiscal year ending on June 30th. She receives i nsurance proceeds on December 5, 2015. She purchases

Explanation / Answer

You must ordinarily report the gain on your stolen or destroyed property if you receive money or unlike property as reimbursement. However, you can choose to postpone reporting the gain if you purchase property that is similar or related in service or use to the stolen or destroyed property within a specified replacement period

To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement.

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