Kareem's office building is destroyed by fire on April 11,2017.Settlement is reached with the insurance company on November 1,2017 when he receives a check for $900,000.The property had recently been appraised for $920,000.Kareem's adjusted basis in the building was $800,000.
a.What is Kareem's realized gain or loss?
b.Assume Kareem wishes to defer the maximum amount of gain.Indicate:
(1)the minimum amount that must be spent on a new property.
(2)any restrictions on the new property in order for it to qualify.
(3)the deadline for placing the new property in service.
c.Assume that instead of a fire,the state forces Kareem to sell the property.Indicate how your responses to part b would differ.

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The Answer of Kareem's office building is destroyed by fire on April 11,2017.Settlement is reached with the insurance company on November 1,2017 when he receives a check for $900,000.The property had recently been appraised for $920,000.Kareem's adjusted basis in the building was $800,000.
a.What is Kareem's realized gain or loss?
b.Assume Kareem wishes to defer the maximum amount of gain.Indicate:
(1)the minimum amount that must be spent on a new property.
(2)any restrictions on the new property in order for it to qualify.
(3)the deadline for placing the new property in service.
c.Assume that instead of a fire,the state forces Kareem to sell the property.Indicate how your responses to part b would differ.

Kareem's Office Building Is Destroyed by Fire on April 11,2017