On October 23, 2019 Bills warehouse, located along the Dallas North Tollway, was damaged by...
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Accounting
On October 23, 2019 Bills warehouse, located along the Dallas North Tollway, was damaged by a tornado. Bills tax basis in this warehouse at the time of the tornado was $800,000. Bill received insurance proceeds of $1,700,000. Complete the following:
If Bill wants to replace the warehouse, and he expects that it will cost $1,900,000 to do so:
Does Bill need to report any gain in 2019? IF no, why no?
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