With an involuntary conversion,what is the time limit to purchase replacement property?
A)Two years from the conversion event.
B)It ends two years after the close of the taxable year the gain is realized (three years for real property held for use in a trade or business,or investment that is condemned).
C)There is no time limit.
D)Five years from the conversion event.

Question

Quizplus · Accepted Answer

The time limit to purchase replacement property after an involuntary conversion ends two years after the close of the taxable year in which the gain is realized. However, for real property that was held for use in a trade or business or investment that is condemned, the time limit is three years.

With an Involuntary Conversion,what Is the Time Limit to Purchase