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Income Tax Planning
Chapter 13: Nontaxable Exchanges/SECTION 1033: INVOLUNTARY CONVERSIONS (2 OF 2)
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Chapter 13: Nontaxable Exchanges

SECTION 1033: INVOLUNTARY CONVERSIONS (2 OF 2)

01.Core Concepts

Replacement property must be: • Similar in function or use as involuntarily converted property • Acquired within a specified time period • Time period starts on the date on which the involuntary conversion or threat of condemnation/governmental action occurs • Time period ends a specified number of years from the end of the year in which the realization first occurred  Natural disasters: 2 years  Condemnation/governmental action: 3 years  Presidentially-declared disaster: 4 years