Involuntary Conversion
Response to the following problem:
On February 17, 2014, Kari was notified by the state that land she owned as an investment was needed for a state park and that the land would be condemned. The state took possession of the land on January 15, 2015, and Kari received her condemnation award on January 20, 2015.
a. If Kari elects to postpone recognition of her gain, by what date must she purchase replacement property
b. What type of property could Kari purchase and still postpone recognition of her gain?