The earliest date that condemned property can be replaced and still qualify for involuntary conversion (nonrecognition) treatment is
A)The date of the actual condemnation.
B)The date of the threat of condemnation.
C)Two years before the actual condemnation.
D)Two years before the threat of condemnation.
E)Three years after the date of the condemnation.

Question

Quizplus · Accepted Answer

The earliest date that condemned property can be replaced and still qualify for involuntary conversion (nonrecognition) treatment is the date of the threat of condemnation. This allows taxpayers to act in anticipation of a condemnation, recognizing that the process and its impact on property value can begin as soon as the threat is known.

The Earliest Date That Condemned Property Can Be Replaced and Still