Question
Tax Drill - Replacement Period Emma's building is destroyed on November 28, 2018. The adjusted basis is $645,000. Emma receives $680,000 from the insurance company
Tax Drill - Replacement Period
Emma's building is destroyed on November 28, 2018. The adjusted basis is $645,000. Emma receives $680,000 from the insurance company on January 2, 2019. She is a calendar year taxpayer.
a. The latest date for replacement is December 31, 2020 .
b. Assume the same facts as above except that Emma's building is condemned. Emma receives notification of the future condemnation on October 15, 2018, The condemnation occurs on November 28, 2018, with the condemnation proceeds being received on January 2, 2019.
The latest date for replacement is December 31, 2021 .
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
5th International Edition
0132815591, 9780132815598
