Dennis,a Calendar Year Taxpayer,owns a Warehouse (Adjusted Basis of $190,000)which

Dennis,a calendar year taxpayer,owns a warehouse (adjusted basis of $190,000)which is destroyed by a tornado in October 2014.He receives insurance proceeds of $250,000 in January 2015.If before 2018,Dennis replaces the warehouse with another warehouse costing at least $250,000,he can elect to postpone the recognition of any realized gain.