A taxpayer's property with an adjusted basis of $75,000 and fair market value of $105,000 was condemned
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A taxpayer's property with an adjusted basis of $75,000 and fair market value of $105,000 was condemned by the state. The taxpayer received $100,000 from the state as compensation for the property, and six months after the condemnation purchased a replacement property for $100,000. What are the tax consequences of this transaction? A. No gain is recognized, and the basis in the new property is $75,000. B. No gain is recognized, and the basis in the new property is $100,000. C. A gain of $25,000 is recognized, and the basis in the new property is $100,000. D. A gain of $30,000 is recognized, and the basis in the new property is $100,000
Related Book For
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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