Rachel Weitzman's basis in investment-use land was $15,000. She received a gross condemnation award of $17,500. Her net condemnation award was $12,250. She purchased replacement property at a cost of $18,000. What is Rachel's basis in the replacement property?    $2,500  $15,000  $15,500  $18,00

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter1: An Introducti On To Taxation And Understa Nding The Federal Tax Law
Section: Chapter Questions
Problem 49DQ
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Rachel Weitzman's basis in investment-use land was $15,000. She received a gross condemnation award of $17,500. Her net condemnation award was $12,250. She purchased replacement property at a cost of $18,000. What is Rachel's basis in the replacement property?

 
 $2,500
 $15,000
 $15,500
 $18,000
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