Johnson owned a business-use office building that was destroyed in a flood. The adjusted basis at the time was $890k. Johnson got an insurance check for $850k. He used the $850k to buy a new building in the same year that the flood hit. How much is Johnson's recognized loss, what is his new building's basis?

Johnson owned a business-use office building that was destroyed in a flood. The adjusted basis at the time was $890k. Johnson got an insurance check for $850k. He used the $850k to buy a new building in the same year that the flood hit. How much is Johnson's recognized loss, what is his new building's basis?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 12BCRQ

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