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What is a 1033?

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TaxInfoDesk

Lvl 1
15y ago
Updated: 8/18/2019

The basis of property purchased as the result of an involuntary conversion on which gain is not recognized is the cost of the replacement property less the amount of gain not recognized on the conversion. If qualifying replacement property is received as the result of an involuntary conversion, the replacement property's basis is the same as the basis of the involuntarily converted property decreased by any loss recognized on the conversion and any money received and not spent on qualifying replacement property. The basis is increased by any gain recognized on the conversion and any cost of acquiring the replacement property (Code Sec. 1033 (b) ¶ 29,640, ¶ 29,644).

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Wiki User

15y ago

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