Real property where Paul Peterson's warehouse is located is condemned by the state government on November 23, 2012. Paul's adjusted basis in the warehouse is $420,000. He receives its $1 million condemnation award from the state on March 5, 2013. What is the latest date that Paul can purchase qualiﬁed replacement property and be able to defer the entire $580,000 realized gain from the condemnation?
A) November 23, 2015.
B) December 31, 2015.
C) March 5, 2016.
D) December 31, 2016.
E) November 23, 2016.

Question

Quizplus · Accepted Answer

In a condemnation, Paul has until three years after the end of the year in which proceeds are received

Real Property Where Paul Peterson's Warehouse Is Located Is Condemned