Theresa owns a boat that is held for personal use and has a $100,000 basis. The boat is destroyed by a storm and Theresa collects $120,000 from the insurance company. She purchases a new $150,000 boat for personal use and elects to defer any gain on the transaction. What is the basis of the new boat?

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The Answer of Theresa owns a boat that is held for personal use and has a $100,000 basis. The boat is destroyed by a storm and Theresa collects $120,000 from the insurance company. She purchases a new $150,000 boat for personal use and elects to defer any gain on the transaction. What is the basis of the new boat?

Theresa Owns a Boat That Is Held for Personal Use