replacement period

replacement period definition - business

replacement period

The period during which certain assets can be replaced without recognition of a gain for tax purposes. In most cases, property that is damaged, destroyed, stolen, requisitioned, or condemned and replaced with other property or money (insurance or condemnation settlement) does not result in a taxable gain if the replacement occurs within two years.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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