PTAX Like-Kind Exchanges and Involuntary Conversions REG11-109X

What are the key differences between involuntary conversion and like-kind exchange rules?

• Involuntary conversation rules apply to only gains while like-kind exchange rules apply to both gains and losses
• Under the involuntary conversion rules, the type of replacement property is narrower than the like-kind property
• Involuntary conversion rules are elective while like-kind exchange rules are mandatory