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

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The Answer is a. Samuel must reinvest at least $950,000, an amount equal to the amount realized. This results in a postponed gain of $350,000 ($950,000 amount realized - $600,000 adjusted basis).
b. Samuel's basis for the replacement property would be:

a. Samuel must reinvest at least $950,000, an amount equal to the amount realized. This results in a postponed gain of $350,000 ($950,000 amount realized - $600,000 adjusted basis). b. Samuel's basis for the replacement property would be: c. Since business real property has been condemned, the broader like-kind exchange rules apply. Thus, any realty (i.e., improved or unimproved) will suffice as replacement property. d. The earliest date that Samuel can acquire another hotel is May 2, 2018, the date of the threat or imminence of requisition or condemnation of the property. e. The latest date that Samuel can acquire another hotel is September 30, 2021 (three years after the close of the tax year in which the proceeds received are large enough to produce a realized gain). f. The latest date that Samuel can acquire another hotel is September 30, 2020 (two years after the close of the tax year in which the proceeds received are large enough to produce a realized gain).

c. Since business real property has been condemned, the broader like-kind exchange rules apply. Thus, any realty (i.e., improved or unimproved) will suffice as replacement property.
d. The earliest date that Samuel can acquire another hotel is May 2, 2018, the date of the threat or imminence of requisition or condemnation of the property.
e. The latest date that Samuel can acquire another hotel is September 30, 2021 (three years after the close of the tax year in which the proceeds received are large enough to produce a realized gain).
f. The latest date that Samuel can acquire another hotel is September 30, 2020 (two years after the close of the tax year in which the proceeds received are large enough to produce a realized gain).

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

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

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Correct Answer:
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