Anja's trailer home was destroyed by fire. The adjusted basis of the home was $95,000 and Anja receives $120,000 from the insurance company in in the 2023. Anja defers reporting any gain on the involuntary conversion. He plans to buy a replacement property in the following year, but ultimately decides to rent instead. When Anja decides to rent in 2024 and not replace the property, how is the gain from the involuntary conversion reported? ANSWER Unselected Anja must amend his 2023 return to reflect the gain of $25,000. Unselected Anja should reduce his taxable income by $25,000 in 2023. Unselected Anja must report the gain of $25,000 on his 2024 return. Unselected The gain is not reported since it is the result of an involuntary conversion