Which of the following are qualified replacement properties for properties involuntarily converted? Explain.

a. The city of Marble River announces plans to condemn Heima’s rental apartment complex on July 2, 2020. On August 7, 2020, Heima purchases a warehouse to use as a rental. The city pays Heima $890,000 on November 1, 2020, as the condemnation proceedings come to a close.

b. The city of Marble River also announces plans to condemn Heima’s principal residence on July 2, 2020. He receives a check for $350,000 on the November 1, 2020, condemnation closing date. On March 29, 2021, Heima purchases a new residence for $375,000. His basis in the condemned residence is $60,000.

c. Lila uses the insurance proceeds from the destruction of her commercial fishing boat by Hurricane Fredd to buy new fishing equipment and nets for her other fishing boat.

d. Milo uses the insurance proceeds from a fire that totally destroys his warehouse to buy 100 percent of the common stock of Storage Space Corporation, a company that owns and operates three warehouses.