### Question
Can you define what replacement period means?


### Answer
**Replacement period** is defined as the following in *26 U.S.C. § 473*:

> the shorter of—



(A) the period of the 3 taxable years following the liquidation year, or



(B) the period specified by the Secretary in a notice published in the Federal Register with respect to that qualified inventory interruption

#### 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**

