Question

Howard's roadside vegetable stand (adjusted basis of $275,000) is destroyed by a tractor-trailer accident. He receives insurance proceeds of $240,000 ($300,000 fair market value less $60,000 coinsurance). Howard immediately uses the proceeds plus additional cash of $45,000 to build another roadside vegetable stand at the same location.
What are the tax consequences to Howard?


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  • CreatedMay 25, 2015
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