Tax Drill - Apply Section 121 ExclusionConstanza, who is single, sells her current personal residence (adjusted basis of $165,000) for $450,000. She has owned and lived in the house for 30 years. Her selling expenses are $22,500.Constanza’s realized gain is $and her recognized gain would be $. Tax Drill - Involuntary Conversion - CondemnationCamilo’s property, with an adjusted basis of $155,000, is condemned by the state. Camilo receives property with a fair market value of $180,000 as compensation for the property taken. If an amount is zero, enter "0".Camilo’s realized gain is $and his recognized gain is $. The basis of the replacement property is $.
On February 24, 2016, 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, 2016, 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.Allison has until December 31, 2018 to make the new investment and qualify for the nonrecognition election. Assuming that the replacement property qualifies as similar or related inservice or use, Allison’s realized gain is $and recognized gain is $.Allison’s basis in the new building is $. Exercise 13-27 (LO. 1)Melba purchases land from Adrian. Melba gives Adrian $225,000 in cash and agrees to pay Adrian an additional $400,000 one year later plus interest at 5%.a. What is Melba's adjusted basis for the land at the acquisition date?3500001000001300000