A condemned office building owned and used in the business by a taxpayer can be replaced by land and qualify for nonrecognition treatment.

Question

Quizplus · Accepted Answer

Under Section 1033 of the Internal Revenue Code, a taxpayer may be able to replace a condemned property with a new property and qualify for nonrecognition treatment. This applies even if the condemned property was used in the taxpayer's business. The new property must be used for a similar purpose as the condemned property and must be acquired within certain timeframes as outlined in the Code.

A Condemned Office Building Owned and Used in the Business