Kristi Had a Business Building Destroyed in an Earthquake

question 99

Essay

Kristi had a business building destroyed in an earthquake. The old building was purchased for $250,000, and $80,000 of depreciation deductions had been taken. Her insurance proceeds were $550,000. Although the replacement property was much larger and nicer than her old building, Kristi's new property qualified as replacement property. She acquired the new property 13 months after the earthquake for $620,000. What is the amount of Kristi's realized gain and recognized gain and the basis in her new property?

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Definitions:

Influence Tactic

Influence tactics are strategies or actions used by individuals or groups to persuade or direct others’ behaviors, decisions, or attitudes towards a desired outcome.

Self-Promotion

The act of promoting or advocating for oneself to advance one's own interests, career, or status.

Influence Tactic

Strategies or methods used by an individual or group to sway or alter another person's attitudes, behavior, or perceptions.

Self-Promotion

is the act of advocating for oneself to advance personal goals, increase visibility, and highlight one's skills and accomplishments.