Asset Exchange or Conversion Transaction Law and Legal Definition
According to 26 USCS § 501 (Title 26, Internal Revenue Code; Subtitle A, Income Taxes; Chapter 1, Normal Taxes and surtaxes; Subchapter F. Exempt Organizations; Part I, General Rule), the term "asset exchange or conversion transaction" means “any voluntary exchange or involuntary conversion of any property related to generating, transmitting, distributing, or selling electric energy by a mutual or cooperative electric company, the gain from which qualifies for deferred recognition under section 1031 or 1033 [26 USCS § 1031 or 1033], but only if the replacement property acquired by such company pursuant to such section constitutes property which is used, or to be used, for--
(i) generating, transmitting, distributing, or selling electric energy, or
(ii) producing, transmitting, distributing, or selling natural gas.”
