The holding period of replacement property where the election to postpone gain is made includes the holding period of the involuntarily converted property.

Question

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According to the tax code, the holding period of replacement property includes the holding period of the involuntary converted property when the election to postpone gain is made. This means that if a taxpayer sells the replacement property, the holding period for determining long-term or short-term capital gains will include the holding period of the original property.

The Holding Period of Replacement Property Where the Election to Postpone