In 2014, an office building owned by Firm F was completely destroyed by fire. Fs adjusted basis
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In 2014, an office building owned by Firm F was completely destroyed by fire. F’s adjusted basis in the building was $485,000, and its insurance reimbursement was $550,000. On its 2014 tax return, F elected to defer the $65,000 gain realized on the involuntary conversion. In 2016, F invested $560,000 in another office building. In 2017, F settled a dispute with its insurance company concerning the 2014 claim. Pursuant to the settlement, it received a $25,000 additional reimbursement.
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Related Book For
Principles Of Taxation For Business And Investment Planning 2017
ISBN: 9781259753015
20th Edition
Authors: Sally M. Jones, Shelley C. Rhoades Catanach, Sandra R. Callaghan
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