Taxpayer owned residential rental property with adjusted basis of $100,000.
Property burned to the ground on 4/1/2020 and taxpayer received $300,000 from insurance on 6/1/2020.
Taxpayer did not repair the property and relinquished it in a 1031 exchange on 10/1/2020 for $250,000. Replacement property (which is also residential rental property) was acquired on 11/30/2020 for $550,00.
Does this 1033 involuntary conversion with subsequent 1031 like-kind exchange work to defer gain or is there a trap somewhere?
Assuming it works, any thoughts for the 8824?