Tax Accounting , business and finance homework help
Tax Accounting , business and finance homework help
Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market value of the bowling alley was $230,000 before the tornado and its adjusted basis was $100,000. Tobias received $220,000 from his insurance company but he decided to not rebuild the alley. What is Tobias’ recognized gain or loss from this transaction?
$ 0 |
|
Loss of $230,000 |
|
Gain of $120,000 |
|
Gain of $220,000 |