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Lawyer, who is single, has lived in his principal residence for several decades. Lawyer purchased the home for $100,000 and it was worth $500,000 when
Lawyer, who is single, has lived in his principal residence for several decades. Lawyer purchased the home for $100,000 and it was worth $500,000 when it was destroyed in a fire on July 17, 2022. Lawyer recovered $450,000 of insurance proceeds. Lawyer wants to minimize the tax consequences with respect to the involuntary conversion of his residence. What do you suggest that he do (incorporate IRC Sec 121 into your response)?
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