NonTaxable Exchanges

Question 1

Involuntary Conversions Section 1033

Answer 1

Deferral of gain on an involuntary conversion of property due to destruction, theft, seizure, condemnation

Defer gains to extend the proceeds received are reinvested in replacement property w/in appropriate time period (starts at date of realization of involuntary conversion)

Time period ends 2 years from year-end of year that gain is realized

If proceeds aren’t reinvested, gain must be recognized