Question: Rob's property was condemned by the state. He did not hold the property for use in a trade or business or for investment. The adjusted

Rob's property was condemned by the state. He did not hold the property for use in a trade or business or for investment. The adjusted basis of his property was $126,000 and the state paid Rob $136,000 for the property. Rob realized a gain of $10,000. He bought like-kind property for $125,000. Rob made a proper Internal Revenue Code section 1033 election to defer gain from the condemnation on his tax return.

What is the net taxable gain and where must Rob report it?

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