Assume a taxpayer gives up business or income producing property due to an involuntary conversion (casualty or condemnation). The taxpayer has a realized gain on the transaction.

Choose the correct statements from the list below.

SELECT ALL THAT APPLY!!

Question options:

Taxpayer must reinvest the proceeds in qualified replacement property within the required time period in order to defer the gain.

Involuntary conversions are treated as sales so the taxpayer will have to recognize the realized gain.

Taxpayer must reinvest proceeds within 180 days after receiving the casualty or condemnation proceeds in order to defer the gain.

Taxpayer must reinvest at least the amount of the casualty or condemnation proceeds in order to defer recognition of gain. Any amount of the proceeds not reinvested is treated as boot received.