Alex owns an office building which the state condemns on January 15,2016.Alex receives the condemnation award on April 1,2016.In order to qualify for nonrecognition of gain on this involuntary conversion,what is the last date for Alex to acquire qualified replacement property?
A)April 1,2018
B)April 1,2019
C)December 31,2018
D)December 31,2019

Question

Quizplus · Accepted Answer

The replacement period for involuntary conversions generally ends two years after the close of the first tax year in which any part of the gain is realized. Since Alex received the award in 2016, the period ends on December 31, 2018, plus an additional year for condemnation of real property used in a trade or business, making it December 31, 2019.

Alex Owns an Office Building Which the State Condemns on January