The taxpayer generally has only 1 year to replace involuntary converted property in order to postpone...

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The taxpayer generally has only 1 year to replace involuntary converted property in order to postpone...

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

true or false

business accounting

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Answer 1

Answer #1

Answer:- False

When the property is involuntarily converted,

The replacement period start from the earliest

a) the date of converted property is disposed of

b) the date of a threat or immience of requistion or condemnation.

The replacement period end between two to four years

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Answer 2

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