Property used in the trade or business and involuntary conversions

If— If— For purposes of this subsection— The term “section 1231 gain” means— any recognized gain from the compulsory or involuntary conversion (as a result of destruction in whole or in part, theft or seizure, or an exercise of the power of requisition or condemnation or the threat or imminence thereof) into other property or money of— The term “section 1231 loss” means any recognized loss from a sale or exchange or conversion described in subparagraph (A). For purposes of this subsection— In determining under this subsection whether gains exceed losses— Losses (including losses not compensated for by insurance or otherwise) on the destruction, in whole or in part, theft or seizure, or requisition or condemnation of— In the case of any involuntary conversion (subject to the provisions of this subsection but for this sentence) arising from fire, storm, shipwreck, or other casualty, or from theft, of any— For purposes of this section— The term “property used in the trade or business” means property used in the trade or business, of a character which is subject to the allowance for depreciation provided in section 167, held for more than 1 year, and real property used in the trade or business, held for more than 1 year, which is not— Such term includes timber, coal, and iron ore with respect to which section 631 applies. Such term includes— In the case of an unharvested crop on land used in the trade or business and held for more than 1 year, if the crop and the land are sold or exchanged (or compulsorily or involuntarily converted) at the same time and to the same person, the crop shall be considered as “property used in the trade or business.” The net section 1231 gain for any taxable year shall be treated as ordinary income to the extent such gain does not exceed the non-recaptured net section 1231 losses. For purposes of this subsection, the term “non-recaptured net section 1231 losses” means the excess of— For purposes of this subsection, the term “net section 1231 gain” means the excess of— For purposes of this subsection, the term “net section 1231 loss” means the excess of— For purposes of determining the amount of the net section 1231 gain or loss for any taxable year, the rules of paragraph (4) of subsection (a) shall apply.