IRC section 1033 requires a taxpayer (either an individual or a business) to make a timely election and a timely replacement to defer gain on property following an involuntary conversion—when property is completely or partially destroyed, for example, by fire or natural disaster. A gain often results when the taxpayer receives an insurance settlement for more than the property’s cost basis. Taxpayers may make elections after they have filed the tax return for the year in which they receive the insurance proceeds—subject to time constraints. Here are the rules CPAs can follow in helping clients and employers make these delayed elections.