Exercise 13-39 (Algorithmic) (LO. 7) On February 24, 2020, Allison's building, with an adjusted basis of $3,763,700 (and used in her trade or business), is destroyed by fire. On March 31, 2020, she receives an insurance reimbursement of $4,892,810 for the loss. Allison invests $4,403,529 in a new building and buys stock with the balance of insurance proceeds. Allison is a calendar year taxpayer. a. By what date must Allison make the new investment to qualify for the nonrecognition election? b. Assuming that the replacement property qualifies as similar or related in service or use, what are Allison's realized gain, recognized gain, and basis in the replacement building? and recognized gain is $ Allison's realized gain is $ . Her basis in the new building is $

Exercise 13-39 (Algorithmic) (LO. 7) On February 24, 2020, Allison's building, with an adjusted basis of $3,763,700 (and used in her trade or business), is destroyed by fire. On March 31, 2020, she receives an insurance reimbursement of $4,892,810 for the loss. Allison invests $4,403,529 in a new building and buys stock with the balance of insurance proceeds. Allison is a calendar year taxpayer. a. By what date must Allison make the new investment to qualify for the nonrecognition election? b. Assuming that the replacement property qualifies as similar or related in service or use, what are Allison's realized gain, recognized gain, and basis in the replacement building? and recognized gain is $ Allison's realized gain is $ . Her basis in the new building is $

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 40CE

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