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Business, 05.05.2020 16:14 LILG1224

Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 12, 2017, state authorities notify Mitchell that his property is going to be condemned so that the highway can be widened. On June 20, Mitchell's property is officially condemned, and he receives an award of $625,000. Because Mitchell's business was successful in the past, he would like to reopen the restaurant in a new location a. what is the earliest date Mitchell can acquire a new restaurant and qualify for § 1033 postponement? March 12, 2017 Feedback Check My Work b. On June 30, Mitchell purchases land and a building for $610,000. Assuming that he elects postponement of gain under § 1033, what is his recognized gain? Mitchell's recognized gain is $ Feedback Check My Work c. What is Mitchell's adjusted basis for the new land and building? Mitchell's adjusted basis for the new land and building i$450,000 V Feedback Check My Work d. If he does not elect § 1033, what are Mitchell's recognized gain and adjusted basis? If Mitchell does not elect § 1033, his recognized gain is , and his basis for the new land and building is

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Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted b...
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