Edith's Manufacturing Plant Is Destroyed by Fire on the Afternoon

Essay

Edith's manufacturing plant is destroyed by fire on the afternoon of November 3, 2017. The adjusted basis is $800,000. The insurance company offers a settlement of $700,000. After protracted negotiations, Edith receives $825,000 on June 9, 2018. Edith is a fiscal year taxpayer whose tax year ends on June 30th. What is the latest date that Edith can invest the proceeds in qualifying replacement property and elect to defer the gain under § 1033?