Sarah's building is condemned by the state on October 19, 2017. The building has a basis of $400,000 and Sarah receives $600,000 from the state on February 10, 2018. On January 20, 2019, Sarah purchases qualifying replacement property for $565,000. What is Sarah's realized and recognized gain or loss on the condemnation?

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The Answer of Sarah's building is condemned by the state on October 19, 2017. The building has a basis of $400,000 and Sarah receives $600,000 from the state on February 10, 2018. On January 20, 2019, Sarah purchases qualifying replacement property for $565,000. What is Sarah's realized and recognized gain or loss on the condemnation?

Sarah's Building Is Condemned by the State on October 19