Sec 1033 involuntary conversions 1033a general rule

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Sec. 1033, INVOLUNTARY CONVERSIONS 1033(a) General Rule. —If property (as a result of its destruction in whole or in part, theft, seizure, or requisition or condemnation or threat or imminence thereof) is compulsorily or involuntarily converted — 1033(a)(1) Conversion into similar property. —Into property similar or related in service or use to the property so converted, no gain shall be recognized. §1.1033(a)-2., Involuntary conversion into similar property, into money or into dissimilar property Involuntary conversion into similar property, into money or into dissimilar property (a) In general. —The term “disposition of the converted property” means the destruction, theft, seizure, requisition, or condemnation of the converted property, or the sale or exchange of such property under threat or imminence of requisition or condemnation. (b) Conversion into similar property. —If property (as a result of its destruction in whole or in part, theft, seizure, or requisition or condemnation or threat or imminence thereof) is compulsorily or involuntarily converted only into property similar or related in service or use to the property so converted, no gain shall be recognized. Such nonrecognition of gain is mandatory.
9-74 Chapter 9: Acquisitions of Property 83. RIA RESEARCH EXERCISE Use the RIA Checkpoint database to answer the following questions. Cut and paste the relevant Internal Revenue Code and Treasury Regulation section(s) into your solution and explain how the authority answers the tax issue in question. Give the most specific citation applicable [e.g., Sec. 168(a)(1)] that answers the question. Note: If the answer can be found in both the code and regulations, you must provide both authorities. 1. Jerry and Jane are married on March 18, 2006. They use Jane’s house as their residence and sell Jerry’s house on April 27, 2006 for $420,000. Jerry had purchased the house in 1999 for $120,000. a.What code section and/or regulation allows the exclusion of gain from thesale of a taxpayer’s residence?
Chapter 9: Acquisitions of Property9-75121(b) Limitations. —121(b)(1) In general. —The amount of gain excluded from grossincome under subsection (a) with respect to any sale orexchange shall not exceed $250,000.121(b)(2) Special rules for joint returns. —In the case of a

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