The taxpayer generally has only 1 year to replace involuntarily converted property in order to postpone the recognition of gain.

Question

Quizplus · Accepted Answer

The taxpayer generally has 2 years to replace involuntarily converted property to postpone the recognition of gain. However, for property that is compulsorily or involuntarily converted as a result of a Presidentially declared disaster, the period is extended to 4 years. The specific time frame can vary based on the type of property and the circumstances under which it was converted.

The Taxpayer Generally Has Only 1 Year to Replace Involuntarily