A client's rental property burned down. He has received insurance payment for the property loss, and he has a buyer for the land. He is interested in doing a Sec. 1033 exchange. Am I right in assuming that the insurance proceeds and the proceeds from the land sale can be combined in figuring the value of the replacement property he needs to find? It seems reasonable to me, but I can't find the exact situation addressed anywhere.
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Section 1033 involuntary conversion
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