### Question
How is the term qualified replacement property defined?


### Answer
The term **qualified replacement property** is defined in *26 U.S.C. § 2032A* as the following:

> any real property which is—



(I) acquired in an exchange which qualifies under section 1031, or



(II) the acquisition of which results in the nonrecognition of gain under section 1033

#### Citation:
  - *26 U.S.C. § 2032A*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 11-ESTATE TAX > Subchapter A-Estates of Citizens or Residents > PART III-GROSS ESTATE**

