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Definition of 'Involuntary Conversion'
A process where a taxpayer is involuntarily forced to dispose of property that has been stolen, condemned, destroyed or repossessed, and another piece of property or cash is received in lieu of the property. Involuntary conversion can result in a possible gain or loss to the taxpayer, as long as the property was not the taxpayer's main home.
No loss can be deducted if the involuntary conversion is a result of casualty or theft.
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Investopedia explains 'Involuntary Conversion'
If the taxpayer receives insurance or other remuneration for lost property that is worth more than the property's adjusted basis (and is not the taxpayers main home), then the difference between the two amounts must be reported as a capital gain. This gain may be deferred if the taxpayer elects to use the proceeds to acquire replacement property that is worth at least as much as the property that was lost.
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Search results for 'Involuntary Conversion'
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http://stocks.investopedia.com/stock-analysis/2010/Drilling-Frenzy-To-Hold-Acreage-May-Slow-In-2011-CHK-HK-XCO-NFX0816.aspx
... that the industry is in the latter stages of that conversion, and that a ... This pressure
will also ease once the involuntary drilling to hold acreage slows down. ...
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http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bondholders-rights.asp
... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components;
9.10 Reporting The Retirement Or Conversion of Bonds; ...
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