A Warehouse with an Adjusted Basis of $125,000 Was Destroyed

question 66

Short Answer

A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15, 2016. On June 15, 2016, the insurance company paid the owner $195,000. The owner reinvested $170,000 in a warehouse. What is the basis of the new warehouse if non-recognition of gain from an involuntary conversion is elected?

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Definitions:

Lymphocyte Levels

The concentration of lymphocytes, a type of white blood cell, within the blood, which is an important indicator of immune system health.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system, leading to AIDS if not treated.

AIDS

Acquired Immunodeficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV) which severely damages the immune system.

Coronary Heart Disease

A condition characterized by the narrowing of the coronary arteries, leading to decreased blood flow to the heart muscle.