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The Building Used in Tim's Business Was Condemned by the City

question 33

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The building used in Tim's business was condemned by the city of Lafayette.Tim received a condemnation award of $125,000.He paid $1,200 in lawyer's fees and $800 for an appraisal of the property.Tim's adjusted basis in the building was $60,000.Tim reinvests in similar property costing $110,000,and Tim makes the proper election regarding the property.What is the amount of Tim's realized (not recognized) gain on the condemnation?

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Definitions:

Major NCD

stands for Major Neurocognitive Disorder, a condition characterized by significant cognitive decline from a previous level of performance.

Plaques

Clumps of a protein called beta-amyloid, found in brain tissue surrounding the neurons.

Tangles

Twisted masses of threads made of a protein called tau within the neurons of the brain.

Cognitive Impairment

A broad term describing any characteristic that acts as a barrier to the thought process, including memory loss, difficulty in learning new tasks, or making decisions.

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