Tommy's office building is destroyed by fire on April 11, 2016. Settlement is reached with the insurance company on November 1, 2016 when he receives a check for $1,000,000. The property had recently been appraised for $920,000. Tommy's adjusted basis in the building was $600,000.

What is Tommy's realized gain or loss?

Assume Tommy purchases a new office building for $900,000 in December 2016 and spends the remainder of the insurance proceeds paying off student loans. What is his recognized gain?

What is Tommys basis in the new office building?

Assume Tommy wants to defer the maximum amount of gain. How much must be spent on the new office building?

By what date must Tommy reinvest the proceeds in qualified replacement property to be eligible to defer any gain?

On May 1 of this year, Ingrid sold her personal residence for $350,000. Commissions on the sale were $20,000. Ingrid's basis in her old home was $170,000.

What is Ingrids realized gain?

What is Ingrids recognized gain?