When the taxpayer realizes a gain from an involuntary conversion (Sec. 1033 exchange) of property, the gain may be deferred if the property is replaced within the statutory time limit established by law. The time limit is measured from the calendar year the taxpayer received the proceeds, and equals: - 2 years - Destruction or theft of property resulting in insurance recovery. - 3 years - Government condemnation or eminent domain award. - 4 years - Conversion in connection with a federally declared disaster. The time limit is measured by calendar year, so the actual date for replacement is always of the year in which the proceeds are January 1, announced January 1, calculated December 31 , received July 1 , estimated