Ezel / IRS Rulings / 1333011
Chief Counsel Advice 1333011 Released August 16, 2013 Advice

CCA distinguishes the sale reason from the replacement reason under IRC § 1033

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This page covers one taxpayer's ruling from 2013, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2013
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice explains that IRC § 1033(e) and § 1033(f) ask different questions in an involuntary-conversion analysis involving livestock. Section 1033(e) concerns why the livestock was sold. Section 1033(f) concerns why the taxpayer could not replace the converted property with property similar or related in use. The advice also raises environmental contamination as a possible reason replacement property might be unavailable.

Ruling snapshot

  • Question: Under IRC § 1033, which weather-related condition must explain the sale and which must explain the inability to replace the converted property?
  • Outcome: Advice given. Sections 1033(e) and 1033(f) address different reasons.
  • Key authorities: IRC §§ 1033(e) and 1033(f); IRS Publication 225.

Full text (IRS public release)

ID: CCA-517900-13
Office: -------------
UILC: 1033.00-00
Number: 201333011
Release Date: 8/16/2013
From: -------------------
Sent: Friday, May 17, 2013 9:00 AM
To: --------------
Cc: -------------------
Subject: RE: Question about Code Section 1033(f)

Now I see why you guys are confused. The paragraph below from Pub 225 is inaccurate. It says that the
reason you sell has to be because of weather-related conditions. Section 1033(f) says the reason you
can't replace the converted property with similar or related-use property is because of weather-related
conditions. Section 1033(e) looks at why you sold the livestock. Section 1033(f) looks at why you can't
replace it with property similar or related in use. Also, couldn't you not be able to replace converted
livestock because of environmental contamination? I don't think the pub mentions that.

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