In a Nontaxable Exchange, the Replacement Property Is Assigned a Carryover

question 47

True/False

In a nontaxable exchange, the replacement property is assigned a carryover basis if there is a realized gain but receives a new basis if there is a realized loss.

---

Definitions:

Income

Refers to the money received, typically on a regular basis, for work or through investments.

Price

The amount of money required to purchase a good or service.

Price

The amount of money required to purchase a good or service, often determined by factors like demand, supply, and market competition.

Utility Function

A representation or model used in economics to quantify the satisfaction or happiness a consumer derives from consuming goods and services.