Question

A taxpayer whose property was condemned has substantially more flexibility in selecting replacement property than one whose property underwent an involuntary conversion.

A. True

B. False

Answer 1

False. A taxpayer whose property was condemned and a taxpayer whose property underwent an involuntary conversion have different levels of flexibility in selecting replacement property.

Step-by-step explanation:

The statement is

false.

A taxpayer whose property was condemned and a taxpayer whose property underwent an involuntary conversion have different levels of flexibility in selecting replacement property.

When a property is condemned, it means that the government takes possession of the property for public use, often compensating the owner for the fair market value of the property. In this case, the taxpayer has the flexibility to find and select a replacement property that meets their needs and preferences.

On the other hand, in an involuntary conversion, the taxpayer's property is lost or destroyed without their consent, and they may receive compensation through an insurance claim or a casualty loss deduction. The taxpayer does not have the same level of flexibility in selecting replacement property in this situation.