If a taxpayer reinvests the net proceeds (amount received - related expenses) received in an involuntary conversion in qualifying replacement property within the statutory time period, it is possible to defer the recognition of the realized gain.

Question

Quizplus · Accepted Answer

This statement is true. By reinvesting the net proceeds in qualifying replacement property within the statutory time period, the taxpayer can take advantage of the involuntary conversion provisions of the tax code and defer the recognition of the realized gain.

If a Taxpayer Reinvests the Net Proceeds (Amount Received -