1
Q
Involuntary Conversions Section 1033
A
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
