SECTION 1033: INVOLUNTARY CONVERSIONS (1 OF 2)
01.Core Concepts
• Natural disasters, theft, seizure, condemnation, or sale or exchange under threat of condemnation of property • A voluntary act by taxpayer is not an involuntary conversion. • Permits (does not require) nontaxable treatment of gains if: • Amount of reinvestment in replacement property equals or exceeds the amount realized. • Usually associated with eminent domain