1120-US: Reporting replacement property acquired after filing the tax return for postponed gain on a casualty or theft (FAQ)

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When postponing a gain for a casualty or theft, how do I report replacement property acquired after the tax return is filed?


If you have a gain on property lost in a casualty or theft, you can postpone the gain by acquiring replacement property within a specified period. If the replacement property is not purchased in the year of the casualty or theft, complete Screen 4684PY for the year in which the replacement property was purchased. UltraTax CS assumes the replacement property was acquired within the specified replacement period.

If the replacement property was not acquired within the required replacement period, you may need to amend the return for the tax year of the casualty. Refer to IRS Publication 547, Casualties, Disasters, and Thefts for more information on filing an amended return for the casualty gain tax year.

Related topic: 1120-US: Casualties or thefts FAQs