Jared, a Fiscal Year Taxpayer with a August 31st Year-End

question 24

Multiple Choice

Jared, a fiscal year taxpayer with a August 31st year-end, owns an office building (adjusted basis of $800,000) that was destroyed by fire on December 24, 2017. If the insurance settlement was $950,000 (received March 1, 2018) , what is the latest date that Jared can replace the office building in order to qualify for § 1033 nonrecognition of gain?

• A)December 31, 2017.
• B)August 31, 2018.
• C)December 31, 2019.
• D)August 31, 2020.
• E)None of the above.

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