Edsel Posted March 15, 2020 Report Posted March 15, 2020 Does an involuntary conversion include pressure from creditors to release equity in a home? i.e. Financial Distress? Home was a former residence converted to a rental home. Home was sold by owners and not repossessed by creditors. The proceeds only partially satisfied the remaining creditors. Quote
Lion EA Posted March 15, 2020 Report Posted March 15, 2020 I don't think so. Involuntary conversion is more like the state taking your property for a highway. But, someone on here will have dealt with that. Quote
Max W Posted March 15, 2020 Report Posted March 15, 2020 This is how the IRS defines it. No mention of financial distress. "An involuntary conversion occurs when your property is destroyed, stolen, condemned, or disposed of under the threat of condemnation and you receive other property or money in payment, such as insurance or a condemnation award. Involuntary conversions are also called involuntary exchanges.? https://www.irs.gov/businesses/small-businesses-self-employed/involuntary-conversions-real-estate-tax-tips 1 Quote
Edsel Posted March 15, 2020 Author Report Posted March 15, 2020 Thanks for the responses. Good link, Max. Quote
Max W Posted March 15, 2020 Report Posted March 15, 2020 3 hours ago, Edsel said: Thanks for the responses. Good link, Max. You are welcome! Quote
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