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Johnson owned a business-use office building that was destroyed in a flood. The adjusted basis at the time was $890k. Johnson got an insurance check
Johnson owned a business-use office building that was destroyed in a flood. The adjusted basis at the time was $890k. Johnson got an insurance check for $850k. He used the $850k to buy a new building in the same year that the flood hit. How much is Johnsons recognized loss, what is his new building's basis?
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