CCH Federal Taxation Basic Principles
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Involuntary Conversions—What Qualifies
Code Sec. 1033 applies to involuntary conversions occurring through casualty, theft or condemnation. A casualty qualifies for special tax treatment if it is caused by some sudden event such as fire, storm or shipwreck. Termite damage would not qualify. A condemnation qualifies if there is confirmation that property is going to be taken for public purposes. News reports are not deemed to be confirmations.
Chapter 11, Exhibit 15a