Alex owns an office building which the state condemns on January 15,2014.Alex receives the condemnation award on April 1,2014. 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)January 15,2016
B)January 15,2017
C)December 31,2016
D)December 31,2017

Question

Quizplus · Accepted Answer

For involuntary conversions, the replacement period 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 condemnation award in 2014, the last date to acquire replacement property is December 31, 2017.

Alex Owns an Office Building Which the State Condemns on January