Involuntary Conversion: Post-1/2/2000

After 1/2/2000 the IRS applied updated guidelines to property received in an involuntary conversion. Use this disposal method for an involuntary conversion that has occurred after 1/2/2000.

The “Recognize?” field for the Internal and user-defined books defaults to Yes for all disposal dates and property types under the Involuntary Conversion: Post-1/2/2000 method. To avoid/defer recognizing the gain/loss, go to the Disposal Calculation section of the Disposal dialog and choose “No” or “Defer” in the “Recognize?” drop-down for your Internal and/or user-defined book(s).

The system defaults the option to recognize the gain or loss to Yes for the tax books (Tax, State, AMT, and ACE).