Reporting replacement property acquired after the tax return is filed (1040)

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Question

How do I report replacement property acquired after the tax return is filed?

Answer

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 the 4684PY screen for business or income producing property or CasPY screen for personal use properties for the year in which the replacement property was purchased. The casualty or theft information will proforma to the 4684PY screen the following year.

UltraTax CS assumes that 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 gain.

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