Replacement Period

Replacement Period may have one of the following meanings, depending the context of the term:

1. For inventory interruption. Three tax years following the liquidation year, unless a shorter period is published in the Federal Register. Former IRC (check if this IRC provision is current here) §473(d)(3).

2. For involuntary conversion. Two years after the close of the first taxable year in which any part of a gain upon conversion is realized (3 years for business real estate). Former IRC (check if this IRC provision is current here) § 1033(a)(2)(B).

3. For sale of principal residence. A period beginning 2 years before the date of such sale and ending 2 years after this date. Former IRC (check if this IRC provision is current here) § 1034(a), (d).

4.

See also other Tax Terms and Definitions in U.S.A.

tax-deferred exchange; Starker transaction.