Britney owned an office building in Los Angeles that she rented out to several production companies. The building was destroyed by a fire and was a complete loss. Britney received a settlement from her insurance company and would like to reinvest in a new property. Britney wants to make sure that she is eligible for like-kind exchange treatment. Which of the following is not correct regarding the requirements for like-kind exchange treatment on Britney's transaction?

		Because Britney rented out the building instead of using the property directly, the replacement property must meet the functional use test.
		Britney must invest the proceeds in a replacement property that has a similar use to the property that was destroyed in the fire.
		Britney must reinvest the insurance proceeds within two years from the end of the year in which the fire occurred.
		Since Britney received cash as a result of the involuntary conversion, nonrecognition treatment is not mandatory even if she meets all of the requirements. Income Tax