A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15, 2019.

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A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15, 2019. On June 15, 2019, the insurance company paid the owner $195,000. The owner reinvested $170,000 in another warehouse. What is the basis of the new warehouse if non-recognition of gain from an involuntary conversion is elected?

a. $100,000.

b. $125,000.

c. $170,000.

d. $195,000.

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Fundamentals Of Taxation 2020 Edition

ISBN: 9781260483147

13th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler

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