Samuel's Hotel Is Condemned by the City Housing Authority on July

Essay

Samuel's hotel is condemned by the City Housing Authority on July 5, 2017, for which he is paid condemnation proceeds of $950,000. He first received official notification of the pending condemnation on May 2, 2017. Samuel's adjusted basis for the hotel is $600,000 and he uses a fiscal year for tax purposes with a September 30 tax year-end.
a.
How much must Samuel reinvest in qualifying replacement property in order to postpone the recognition of realized gain?

b.
If Samuel reinvests the minimum amount required to avoid recognition of realized gain, what is his basis for the replacement property?

c.
What is qualifying replacement property?

d.
What is the earliest date that Samuel can acquire qualifying replacement property?

e.
What is the latest date that Samuel can acquire qualifying replacement property?

f. How would the answer in e. change if Samuel's hotel had been destroyed in a flood?