Evelyn's office building is destroyed by fire on July 12,2011.The adjusted basis is $315,000.She receives insurance proceeds of $350,000 on August 31,2011.Calculate the amount that Evelyn must reinvest in qualifying property in order that her recognized gain be $20,000.Assume she elects § 1033 (nonrecognition of gain from an involuntary conversion)postponement treatment.

Question

Quizplus · Accepted Answer

The Answer of Evelyn's office building is destroyed by fire on July 12,2011.The adjusted basis is $315,000.She receives insurance proceeds of $350,000 on August 31,2011.Calculate the amount that Evelyn must reinvest in qualifying property in order that her recognized gain be $20,000.Assume she elects § 1033 (nonrecognition of gain from an involuntary conversion)postponement treatment.

Evelyn's Office Building Is Destroyed by Fire on July 12,2011