Treasury Regulations (26 C.F.R.)
26 CFR § 1.1033(a)-1
Involuntary conversions; nonrecognition of gain.
# (a) In general.
Section 1033 applies to cases where property is compulsorily or involuntarily converted. An involuntary conversion may be the result of the destruction of property in whole or in part, the theft of property, the seizure of property, the requisition or condemnation of property, or the threat or imminence of requisition or condemnation of property. An involuntary conversion may be a conversion into similar property or into money or into dissimilar property. Section 1033 provides that, under certain specified circumstances, any gain which is realized from an involuntary conversion shall not be recognized. In cases where property is converted into other property similar or related in service or use to the converted property, no gain shall be recognized regardless of when the disposition of the converted property occurred and regardless of whether or not the taxpayer elects to have the gain not recognized. In other types of involuntary conversion cases, however, the proceeds arising from the disposition of the converted property must (within the time limits specified) be reinvested in similar property in order to avoid recognition of any gain realized. Section 1033 applies only with respect to gains; losses from involuntary conversions are recognized or not recognized without regard to this section.
# (b) Special rules.
For rules relating to the application of section 1033 to involuntary conversions of a principal residence with respect to which an election has been made under section 121 (relating to gain from sale or exchange of residence of individual who has attained age 65), see paragraph (g) of § 1.121-5. For rules applicable to involuntary conversions of a principal residence occurring before January 1, 1951, see § 1.1033(a)-3. For rules applicable to involuntary conversions of a principal residence occurring after December 31, 1950, and before January 1, 1954, see paragraph (h)(1) of § 1.1034-1. For rules applicable to involuntary conversions of a personal residence occurring after December 31, 1953, see § 1.1033(a)-3. For special rules relating to the election to have section 1034 apply to certain involuntary conversions of a principal reisdence occurring after December 31, 1957, see paragraph (h)(2) of § 1.1034-1. For special rules relating to certain involuntary conversions of real property held either for productive use in trade or business or for investment and occurring after December 31, 1957, see § 1.1033(g)-1. See also special rules applicable to involuntary conversions of property sold pursuant to reclamation laws, livestock destroyed by disease, and livestock sold on account of drought provided in §§ 1.1033(c)-1, 1.1033(d)-1, and 1.1033(e)-1, respectively. For rules relating to basis of property acquired through involuntary conversions, see § 1.1033(b)-1. For determination of the period for which the taxpayer has held property acquired as a result of certain involuntary conversions, see section 1223 and regulations issued thereunder. For treatment of gains from involuntary conversions as capital gains in certain cases, see section 1231(a) and regulations issued thereunder. For portion of war loss recoveries treated as gain on involuntary conversion, see section 1332(b)(3) and regulations issued thereunder.
[T.D. 6500, 25 FR 11910, Nov. 26, 1960, as amended by T.D. 6856, 30 FR 13318, Oct. 20, 1965; T.D. 7625, 44 FR 31013, May 30, 1979; T.D. 7758, 46 FR 6925, Jan. 22, 1981]
Source: view the official text
In this part (40 sections)
- 1.1017-1 · Basis reductions following a discharge of indebtedness.
- 1.1019-1 · Property on which lessee has made improvements.
- 1.1020-1 · Election as to amounts allowed in respect of depreciation,…
- 1.1021-1 · Sale of annuities.
- 1.1031-0 · Table of contents.
- 1.1031(a)-1 · Property held for productive use in trade or business or…
- 1.1031(a)-2 · Additional rules for exchanges of personal property.
- 1.1031(a)-3 · Definition of real property.
- 1.1031(b)-1 · Receipt of other property or money in tax-free exchange.
- 1.1031(b)-2 · Safe harbor for qualified intermediaries.
- 1.1031(c)-1 · Nonrecognition of loss.
- 1.1031(d)-1 · Property acquired upon a tax-free exchange.
- 1.1031(d)-1T · Coordination of section 1060 with section 1031…
- 1.1031(d)-2 · Treatment of assumption of liabilities.
- 1.1031(e)-1 · Exchange of livestock of different sexes.
- 1.1031(j)-1 · Exchanges of multiple properties.
- 1.1031(k)-1 · Treatment of deferred exchanges.
- 1.1032-1 · Disposition by a corporation of its own capital stock.
- 1.1032-2 · Disposition by a corporation of stock of a controlling…
- 1.1032-3 · Disposition of stock or stock options in certain…
- 1.1033(a)-1 · Involuntary conversions; nonrecognition of gain.
- 1.1033(a)-2 · Involuntary conversion into similar property, into money…
- 1.1033(a)-3 · Involuntary conversion of principal residence.
- 1.1033(b)-1 · Basis of property acquired as a result of an involuntary…
- 1.1033(c)-1 · Disposition of excess property within irrigation project…
- 1.1033(d)-1 · Destruction or disposition of livestock because of…
- 1.1033(e)-1 · Sale or exchange of livestock solely on account of…
- 1.1033(g)-1 · Condemnation of real property held for productive use in…
- 1.1033(h)-1 · Effective date.
- 1.1035-1 · Certain exchanges of insurance policies.
- 1.1036-1 · Stock for stock of the same corporation.
- 1.1037-1 · Certain exchanges of United States obligations.
- 1.1038-1 · Reacquisitions of real property in satisfaction of…
- 1.1038-2 · Reacquisition and resale of property used as a principal…
- 1.1038-3 · Election to have section 1038 apply for taxable years…
- 1.1039-1 · Certain sales of low-income housing projects.
- 1.1041-1T · Treatment of transfer of property between spouses or…
- 1.1041-2 · Redemptions of stock.
- 1.1042-1T · Questions and answers relating to the sales of stock to…
- 1.1044(a)-1 · Time and manner for making election under the Omnibus…