Do I have to report involuntary conversions on my tax return?

If property is stolen, destroyed, or condemned during the tax year (an involuntary conversion), and a taxable gain is realized from insurance proceeds or some other source, tax on the gain can be deferred by reinvesting the proceeds in property similar to the property that was subject to the involuntary conversion. Two full years after the close of the taxable year in which the involuntary conversion occurs are allowed to make the reinvestment. If the involuntary conversion property is not replaced within the allowed time period, an amended tax return for the year of the involuntary conversion must be filed.
 Related tax information about involuntary conversions
Declared Disaster Areas
Casualty and Theft Losses
Itemized Tax Deductions Directory
IRS publications about involuntary conversions:
For additional information, refer to Form 4684, or Tax Topic 507, Casualty Losses, or IRS Publication 547, Casualties, Disasters, and Thefts (Business and Nonbusiness). Also see IRS Publication 17, Your Federal Income Tax.
 Ask Julian Block your IRS and tax questions!
If you can't find the answer to your IRS or tax question in our web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To call Julian for a tax consultation click here.
 Free Tax Course!  Start a Tax Preparation Business Today! 
Did you know... that you can earn extra money as a professional tax preparer? Become an Authorized IRS e-file Provider!! Full time or part time. Nights. Weekends. No experience necessary! Take a FREE home study tax course! No tuition or fees! Enroll today at TheTaxCollege.com!
 Our Awards

 
For further information regarding IRS rules and regulations and your particular tax or IRS situation you should consult with a Certified Public Accountant, Enrolled Agent, Attorney, or other tax advisor. 
Terms of Use

Have questions or comments about this web site?click here

Privacy Policy

Copyright © WorldWideWeb Tax™. All Rights Reserved.