A conversion of property into money under circumstances beyond the control of the property owner. Example: Property is seized by the government and "converted" into a condemnation award. The tax law provides for certain tax-advantaged treatment upon an involuntary conversion.

A condemnation of private property by a government agency that takes the property for public use by the agency employing its right of "eminent domain" for fair value.

The receipt of money or other property as reimbursement for the loss or destruction of property through theft, casualty, or condemnation. Any gain realized on an involuntary conversion can, at the taxpayer's election, be considered nonrecognizable for federal income tax purposes if the owner reinvests the proceeds within a prescribed period of time in similar property.

The receipt of money or other property as reimbursement for the forced disposition of property as a result of theft, casualty or condemnation. If you receive property as a result of an involuntary conversion, you can calculate the basis of the replacement property using the basis of the converted property.

The destruction or loss of property through theft, casualty, or condemnation. For federal income tax purposes, any gain on such a conversion is not taxable if qualified replacement property is purchased within certain time limits.

The conversion of an asset for money or other property that results from a cause beyond the control of the owner, such as a casualty loss, noncasualty loss, theft, or condemnation. Also see “Casualty loss,” “Condemnation, “Loss,” “Noncasualty loss,” and “Theft loss.'

The conversion of property into money under circumstances beyond the control of the owner. For example: (1) property that is destroyed and "converted" into an insurance settlement or (2) property that is seized by the government and "converted" into a condemnation award. Owners may avoid tax on any gain that may result (if the insurance settlement or condemnation award exceeds the adjusted basis of the property) by reinvesting in similar property within certain time limits.

The receipt of money due to the forced disposition of property due to theft, casualty or condemnation.

Conversion of real property to personal property (money) without the voluntary act of the owner. This occurs when property is taken by eminent domain (condemnation). The owner is allowed to convert back to real property (buy another property) without paying tax on the gain from the condemnation. This must be done within a set time (3 years) and the prices of the old and new property are considered to form a new tax base.