Condemnation gain; time period to identify replacement

Related BrainMass Solutions

• Taxation: Condemnation award gains; replacement real property

  the property owner reinvests the gain realized from the condemnation (within the time required in [section] 1033) by purchasing other property "similar or related in service or use to the [condemned] property," then the gain does not need to be recognized

• Taxation: involuntary conversion for a condemnation

  The only other point to mention is that the cash received for the condemnation and NOT invested in a replacement property will trigger a gain transaction.

• Non-taxable Exchanges

  Which of the following satisfy the time period requirement for postponement of gain as a § 1033 (nonrecognition of gain from an involuntary conversion) involuntary conversion? a.

• Prepare the Journal Entries for Pepsi Co. Condemnation Award

  Replacement value is selling price of $430,000 to buying price of $400,000. The $30,000 difference is gain to the company, and that makes sense because they got to keep the cash for other uses.

• Dispositions, Including Condemnation, and Demolition

  On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $90,000. Furniture On August 15, furniture was contributed to a qualified charitable organization.

• Tax questions: wide variety of subjects

  There is no recognized gain or loss on an involuntary conversion such as condemnation, provided the property is replaced within a reasonable time period. Code Sec 1033 gives the rules for non recognition of gain.

• Tax Deferred Exchange

  Please note that the replacement period for properties destroyed begins on the date of the destruction. Please also note that the replacement period can be extended if a special permission is obtained from the Internal Revenue Service.

• Cash Flow Analysis and NPV

  Lou is fairly certain that the warehouse will be condemned in ten years to make room for a new highway. The firm most likely would receive $200,000 from the condemnation. f.

• Recording Sales, Accounting Issues, Capitalizing Interest, Reporting Gains and Losses, and Contingent Gains and Losses

  a casualty, theft, condemnation or threat of condemnation.