Mia owns a warehouse that has a cost basis of $114,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $572,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement. If amount is zero, enter "0". a.  What is her recognized gain if the new property cost is $400,400? $? b.  What is her recognized gain if the new property cost is $629,200? $? c.  What is her recognized gain if the new property cost is $114,400? $?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law
Section: Chapter Questions
Problem 49DQ
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Mia owns a warehouse that has a cost basis of $114,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $572,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement.

If amount is zero, enter "0".

a.  What is her recognized gain if the new property cost is $400,400?
$?

b.  What is her recognized gain if the new property cost is $629,200?
$?

c.  What is her recognized gain if the new property cost is $114,400?
$?

 

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