Question

On February 24, 2020, Allison's building, with an adjusted basis of $1,300,000 (and used in her trade or business), is destroyed by fire. On March 31, 2020, she receives an insurance reimbursement of $1,650,000 for the loss. Allison invests $1,550,000 in a new building and buys stock with the balance of insurance proceeds. Allison is a calendar year taxpayer. a. By what date must Allison make the new investment to qualify for the nonrecognition election

Answer 1

December 31,2022

Step-by-step explanation:

a. Since in the question it is mentioned that the allison is a taxpayer for the calender year so here the date that should be make the new investment in order to qualify for the non-recognition election is Dec 31,2022

So the same would be considered and relevant too

Hence, the date would be December 31,2022