When an involuntary conversion is due to the condemnation of real property held for productive use in a trade or business or for investment,the replacement period will end three years after the close of the first tax year in which any part of the gain is realized.

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This statement is true according to the Internal Revenue Code section 1033. The replacement period for an involuntary conversion due to condemnation of real property held for productive use in a trade or business or for investment is extended to three years from the close of the first tax year in which any part of the gain is realized.

When an Involuntary Conversion Is Due to the Condemnation of Real