### Question
How does COMMON NONTAXABLE EXCHANGES define replacement period?


### Answer
Under *26 U.S.C. § 1042*, **replacement period** is defined as:

> the period which begins 3 months before the date on which the sale of qualified securities occurs and which ends 12 months after the date of such sale

#### Citation:
  - *26 U.S.C. § 1042*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART III-COMMON NONTAXABLE EXCHANGES**

