### Question
How does the law define qualified replacement property?


### Answer
Under *26 U.S.C. § 2032A*, **qualified replacement property** is defined as:

> 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**

