In order to defer a gain that was realized as a result of an

In order to defer a gain that was realized as a result of an involuntary conversion, a taxpayer must...

Multiple Choice

prepay the estimated tax liability.

have property that is located in a presidentially declared disaster zone.

replace the property involved with property that is similar or related in service or use.

none of the above

Solution

Taking or destruction of asset without the consent of property owner is termed as involuntary conversion .

In an involuntary conversion, gain realised can be deffered with replacement of property with qualified property within a defined time frame by the taxpayer .

Hence the answer to the question is - replace the property involved with property that is similar or related in service or use.