Alex owns an office building which the state condemns on January 15, 2018. Alex receives the condemnation award on April 1, 2018. In order to qualify for nonrecognition of gain on this involuntary conversion, what is the last date for Alex to acquire qualified replacement property?
A) April 1, 2020
B) April 1, 2021
C) December 31, 2020
D) December 31, 2021
D) December 31, 2021
If real property used in a business is condemned, the replacement period ends three years after the close of the first tax year in which any part of the gain is realized.
You might also like to view...
Identify and describe the two primary types of data coding processes
What will be an ideal response?
Accounting is an information and measurement system that does all of the following except:
A. Eliminates the need for interpreting financial data. B. Records business activities. C. Helps people make better decisions. D. Communicates business activities. E. Identifies business activities.
Organizational behavior focuses on the
A. economic side of management. B. control side of management. C. human side of management. D. financial side of management. E. production side of management.
Sandy Cowden inherited $700,000 from her grandfather. Reginald LaRocco is a local businessman who operates an almond ranch and is an insurance salesperson. He owns several land parcels in the local community and wants to sell some of this land to Sandy
He convinces Sandy to buy Riveracres, Reginald's ranch on the outskirts of town. Reginald tells Sandy that there are 130 acres on the ranch. In fact there are only 90 . Sandy has the ranch surveyed before buying and learns that it has only 90 acres. Reginald tells Sandy that he paid $50,000 for the land 40 years earlier and it is worth 10 times that today. He actually only paid $25,000 for the land which he purchased 53 years ago. He sells it to Sandy for $380,000 and three months later Sandy finds out a similar adjoining parcel sold for $210,000 . Sandy wants to get out of the Riveracres contract. Will she be able to do so? Why or why not? Explain.