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Alex Owns an Office Building Which the State Condemns on January

question 29

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Alex owns an office building which the state condemns on January 15,2016.Alex receives the condemnation award on April 1,2016.In order to qualify for nonrecognition of gain on this involuntary conversion,what is the last date for Alex to acquire qualified replacement property?


Definitions:

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change despite changes in price.

Excise Tax

A tax imposed on the sale of specific goods and services, such as tobacco, alcohol, and gasoline.

Marginal Rate

The rate at which the cost or value of something changes with a one-unit increase in quantity or production.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

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