A sole proprietor's building used in her business was destroyed in a fire. Her basis in the
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A sole proprietor's building used in her business was destroyed in a fire. Her basis in the building was $175,000 and its FMV (fair market value) was $210,000. She received $200,000 in proceeds from her insurance provider. In the same year, she reinvested the insurance proceeds into the purchase of a business building costing $190,000.
Assuming the proper federal election is made under Section 1033, what would be the gain she will recognize?
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date: