Lucinda,a calendar year taxpayer,owned a rental property with an adjusted basis of $312,000 in a major coastal city.Her property was condemned by the city government on October 12,2015.In order to build a convention center,Lucinda eventually received qualified replacement property from the city government on March 9,2016.This new property has a fair market value of $410,000.
a.
What is Lucinda's recognized gain or loss on the condemnation?
b.What is her adjusted basis for the new property?
c.
If,instead of receiving qualifying replacement property,Lucinda was paid $410,000,what is the latest date that she can acquire qualifying replacement property?

Question

Lucinda,a calendar year taxpayer,owned a rental property with an adjusted basis of $312,000 in a major coastal city.Her property was condemned by the city government on October 12,2015.In order to build a convention center,Lucinda eventually received qualified replacement property from the city government on March 9,2016.This new property has a fair market value of $410,000.
a.​
What is Lucinda's recognized gain or loss on the condemnation?
b.What is her adjusted basis for the new property?
c.​
If,instead of receiving qualifying replacement property,Lucinda was paid $410,000,what is the latest date that she can acquire qualifying replacement property?

Quizplus · Accepted Answer

The Answer of Lucinda,a calendar year taxpayer,owned a rental property with an adjusted basis of $312,000 in a major coastal city.Her property was condemned by the city government on October 12,2015.In order to build a convention center,Lucinda eventually received qualified replacement property from the city government on March 9,2016.This new property has a fair market value of $410,000.
a.​
What is Lucinda's recognized gain or loss on the condemnation?
b.What is her adjusted basis for the new property?
c.​
If,instead of receiving qualifying replacement property,Lucinda was paid $410,000,what is the latest date that she can acquire qualifying replacement property?

Lucinda,a Calendar Year Taxpayer,owned a Rental Property with an Adjusted