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Nontaxable Exchange

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Nontaxable Exchange
An exchange on which no gain or loss is recognized in the current year. The realized gain generally is recognized when the property acquired in the exchange is sold.


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Boot is money or any other property that doesn't qualify for nonrecognition of gain in an otherwise nontaxable exchange.
Delaying or Minimizing Recapture A taxpayer can postpone depreciation recapture by using a nontaxable exchange to dispose of an appreciated asset.
Generally the transfer of property from one spouse to another due to a divorce is a nontaxable exchange under IRC section 1041.
 
 
 
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