Matthew's retail store was condemned by the state. The retail store had a basis of $452000 and a FMV of $482500. The state awarded Matthew $605000, which he used to purchase a qualified replacement property for $527100 within the replacement time period. Calculate the basis in there placement property for the involuntary conversion. A)$452000 B) $527100 C)$605000 D) $482500
Matthew's retail store was condemned by the state. The retail store had a basis of $452000 and a FMV of $482500. The state awarded Matthew $605000, which he used to purchase a qualified replacement property for $527100 within the replacement time period. Calculate the basis in there placement property for the involuntary conversion. A)$452000 B) $527100 C)$605000 D) $482500
Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law
Section: Chapter Questions
Problem 49DQ
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