Question

For the scenario described (e. None of these choices are correct), which of the following choices satisfies the definition of an involuntary conversion?

A) A taxpayer sells property at a gain.
B) A taxpayer exchanges property for another property of equal value.
C) A taxpayer's property is destroyed by a natural disaster.
D) A taxpayer voluntarily destroys their own property.

Answer 1

Choice C) A taxpayer's property is destroyed by a natural disaster satisfies the definition of an involuntary conversion.

Step-by-step explanation:

An involuntary conversion refers to a situation in which a taxpayer's property is destroyed or taken without their consent, and they receive compensation for this loss. In the given scenario, the choice that satisfies the definition of an involuntary conversion is C) A taxpayer's property is destroyed by a natural disaster.