Involuntary Conversions Condemnations Gains and losses from condemned Sec. 1231 property and non-personal condemned capital asset treated as Sec 1231 gains and losses Other involuntary conversions A net gain from casualties and theft is treated as sec. 1231 gain Net losses on Sec. 1231 property from casualties and theft is treated as ordinary IncomeInvoluntary Conversions • Condemnations – Gains and losses from condemned Sec. 1231 property and non-personal condemned capital asset treated as Sec. 1231 gains and losses – Other involuntary conversions – A net gain from casualties and theft is treated as Sec. 1231 gain – Net losses on Sec. 1231 property from casualties and theft is treated as ordinary income