Robert J. and Anne L. Wilson - Page 16
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There is no dispute that a portion of the DeSellum property
was "involuntarily converted", as required by section 1033.
There is a dispute, however, regarding the date of the
conversion. Petitioners assert that the DeSellum property
described in the original petition and the DeSellum property
described in the amended petition were both condemned on December
16, 1987, noting that prior to this date the State had not
properly commenced quick take condemnation proceedings against
the subject property. Although the description of the property
to be acquired in the original condemnation petition was
incorrect, we do not think this fact is significant. Rather, we
conclude that the property described in the original condemnation
petition and the property described in the amended petition were
condemned on June 16, 1980, because by that date the State had
taken possession of both portions of the DeSellum property. It
is this dispossession and appropriation of property by the State
that Maryland law treats as a condemnation. State v. G.L.
Cornell Co., 584 A.2d 1331, 1336-1337 (Md. 1991).
Having found that the section 1033 replacement period began
on June 16, 1980, we now must examine when the replacement period
ended. The replacement period ends 3 years "after the close of
the first taxable year in which any part of the gain upon the
conversion is realized, or * * * subject to such terms and
conditions as my be specified by the Secretary". Sec.
1033(a)(2)(B)(i). In regard to the latter ending date, the
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