The basics of involuntary conversion are well known – if eligible property is involuntarily converted (e.g., by fire or other casualty, theft or condemnation), to the extent the converted property is replaced with property “similar or related in service or use”1 within the designated period2 no gain is recognized.3 For real property taken by condemnation or threat or imminence of condemnation, the property only needs to be of a “like-kind” to the converted property if held for productive use in a trade or business or for investment.4 If those conditions are met, like-kind property is treated as property similar or related in service or use.5
Harl, Neil E.
"Meaning of "Similar or Related in Service or Use" in Involuntary Conversions,"
Agricultural Law Digest: Vol. 18
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol18/iss11/1