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. |
|
|
|
