CCH Federal Taxation Basic Principles
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The nature of the replacement property dictates whether Code Sec. 1033 is mandatory or elective:
1. . If the award is like-kind replacement, gains but NOT losses must be postponed.
2. . If the award is cash or other NON-like kind replacement, Code Sec. 1033 may be elected for gains but NOT losses.
Involuntary Conversions—What Qualifies
Chapter 11, Exhibit 15b