Jeremy concludes his three-part series on losses by examining IRC Section 1033, the tax code's provision for what happens after you replace property lost to casualty, theft, or government condemnation. When clients receive insurance payouts or condemnation proceeds, they face a critical decision: recognize the gain immediately or defer it by purchasing qualifying replacement property within specific timeframes. Jeremy breaks down the "similar use" requirements, the two to four year replacement periods depending on property type, and how basis carries over to help clients avoid unexpected tax bills when bad things force them to start over.

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• (00:00) - Welcome to Tax in Action
• (00:19) - Recap of Previous Episodes
• (00:53) - Involuntary Conversions Explained
• (04:06) - Case Study: Jessica's Print Shop
• (05:41) - Defining Involuntary Conversions
• (07:01) - Government Seizures and Condemnations
• (07:36) - Court Cases and Legal Precedents
• (20:27) - Replacement Property Rules
• (35:10) - Special Rules for Principal Residences
• (50:11) - State Tax Law Considerations
• (54:09) - Conclusion and Final Thoughts

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