CCH Federal Taxation Basic Principles
52 of 66
Code Sec. 1033 is more restrictive than Code Sec. 1031, except for the replacement of condemned real property. Generally, Code Sec. 1033 replacement property must be used in substantially the same way as the involuntary conversion property.
Real for real is not always OK; (e.g., timberland - a bowling alley, unless one of the real properties had been condemned. Only condemned real property gets the same like-kind flexibility afforded Code Sec. 1031 property)
Personal for personal is not always OK; (e.g., delivery truck business - car; however a delivery truck for a delivery truck, or a business car for a business car, is OK.)
Involuntary Conversions—What Qualifies
Chapter 11, Exhibit 15c