### Question
How is the term liquidation year defined?


### Answer
The term **liquidation year** is defined in *26 U.S.C. § 473* as the following:

> the taxable year in which occurs the qualified liquidation to which this section applies

#### 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**

