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.

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Definitions:

Wider

Having a greater width; more broad.

Organic Matter

Material derived from living organisms, including plants, animals, and their by-products, decomposing in the environment.

Weathered Rock

Rock that has undergone physical or chemical breakdown due to atmospheric or biological elements, leading to changes in texture, composition, or color.

O Horizon

The O Horizon is the uppermost layer of soil, primarily composed of organic matter such as decomposing leaves and other plant material, crucial for nutrient cycling and soil fertility.