Austins hotel is condemned by the City Housing Authority on July 5, 2022, for which he is
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Question:
Austins hotel is condemned by the City Housing Authority on July 5, 2022, for which he is paid condemnation proceeds of $950,000. He first received official notification of the pending condemnation on May 2, 2022. Austins adjusted basis for the hotel is $600,000 and he uses a fiscal year for tax purposes with a September 30 tax year-end.
- How much must Austin reinvest in qualifying replacement property to postpone the recognition of realized gain
- If Austin reinvests the minimum amount required to avoid recognition of realized gain, what is his basis for the replacement property?
- What is qualifying replacement property?
- What is the earliest date that Austin can acquire qualifying replacement property?
- What is the latest date that Austin can acquire qualifying replacement property?
- How would the answer in e. change if Austins hotel had been destroyed in a flood?
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