Vera owns an office building that she leases to tenants. If the building is destroyed by a tornado, is the functional use test or the taxpayer use test applied as to replacement property?

Complete the statements below regarding the test Vera should use and the difference between the two.

Because Vera is an - investor-user or owner-investor or owner user - rather than an - investor-user or owner-investor or owner user -, the -functional use test or taxpayer use test - applies. As such, Vera's use of the replacement property must be - the same as or similar in the relationship of the services - the use of the involuntarily converted property. Therefore, the - functional use test or taxpayer use test - provides the taxpayer with greater flexibility in terms of qualifying replacement property.