Lucinda, a Calendar Year Taxpayer, Owned a Rental Property with an Adjusted

question 71

Essay

Lucinda, a calendar year taxpayer, owned a rental property with an adjusted basis of $312,000 in a major coastal city.Her property was condemned by the city government on October 12, 2019.To build a convention center, Lucinda eventually received qualified replacement property from the city government on March 9, 2020.This new property has a fair market value of $410,000.
a.What is Lucinda's recognized gain or loss on the condemnation?
b.What is her adjusted basis for the new property?
c.If, instead of receiving qualifying replacement property, Lucinda was paid $410,000, what is the latest date that she can acquire qualifying replacement property?

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Definitions:

Reformulated Learned Helplessness

An updated theory that explains how individuals learn to feel powerless and unable to control their environment, contributing to depression and other mental health issues.

Causal Attributions

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood glucose; plays roles in metabolism, immune response, and stress management.

Neuroendocrine System

A system that involves the interactions between the nervous system and the endocrine system, regulating hormone release and maintaining bodily homeostasis.