### Question
How is the "replacement year" defined?


### Answer
The term **replacement year** is defined in *26 U.S.C. § 473* as follows -

> any taxable year in the replacement period

#### Citation:
  - *26 U.S.C. § 473*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart D-Inventories**

