Realized Gain or Loss Must Be Recognized Unless a Specific

question 96

True/False

Realized gain or loss must be recognized unless a specific Code section provides for nonrecognition treatment.

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Definitions:

Innocent Misrepresentation

A false statement made by one party to another without knowledge of its falsity, leading to an erroneous contract without intentional deception.

Misrepresentation

The act of providing false or misleading statements or impressions, especially in contracts, which can lead to legal consequences.

Statement Of Fact

A declaration or assertion made about a situation or circumstance, often in a legal or official context.

Parol Evidence Rule

A legal principle preventing the introduction of oral or extrinsic evidence to contradict or vary the terms of a written contract.