Involuntary Conversion of Business Assets

Authors

Guido van der Hoeven, North Carolina State University

Files

Description

During the course of operating a farm or ranch, operators will get rid of, lose, or dispose of property used in the business in a variety of ways. Sometimes events beyond the control of the business result in disposition of property. The purpose of this discussion is to illustrate correct income tax reporting when business properties are disposed of due to an involuntary conversion or casualty that may occur suddenly and is beyond management’s control.

This discussion will focus on the involuntary conversion of tangible personal property (i.e., equipment and vehicles), which may be the result of a casualty loss event. The point of the discussion is to enhance the reader’s understanding of correct income tax reporting of sales and replacement purchases as a result of an involuntary conversion. Involuntary conversions of real estate are discussed briefly.

Publisher

Rural Tax Education

Publication Date

7-2016

Keywords

involuntary, conversion, business assets

Disciplines

Education | Higher Education | University Extension

Recommended Citation

van der Hoeven, Guido, "Involuntary Conversion of Business Assets" (2016). Rural Tax Education. 17.
https://digitalcommons.usu.edu/rural_tax/17