An involuntary conversion occurs whenever a loss (but not a gain) is realized from a transaction that occurs against the taxpayer's will.

Question

Quizplus · Accepted Answer

An involuntary conversion can occur with both a loss and a gain; it refers to the process where property is destroyed, stolen, condemned, or disposed of under the threat of condemnation and the proceeds are reinvested in similar property, not just to situations resulting in a loss.

An Involuntary Conversion Occurs Whenever a Loss (But Not a Gain)