Real Property Where Paul Peterson's Warehouse Is Located Is Condemned

question 72

Multiple Choice

Real property where Paul Peterson's warehouse is located is condemned by the state government on November 23, 2012. Paul's adjusted basis in the warehouse is $420,000. He receives its $1 million condemnation award from the state on March 5, 2013. What is the latest date that Paul can purchase qualified replacement property and be able to defer the entire $580,000 realized gain from the condemnation?

• A) November 23, 2015.
• B) December 31, 2015.
• C) March 5, 2016.
• D) December 31, 2016.
• E) November 23, 2016.

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