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No Taxable Gain or Loss Is Recognized on a Like-Kind

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No taxable gain or loss is recognized on a like-kind exchange of an investment asset for a similar asset that will be held for investment if both assets consist of


Definitions:

Deferred Tax Liability

A tax obligation that arises when taxable income will be higher in future periods due to temporary differences in accounting methods.

Tax Effect

The impact financial transactions have on the amount of tax payable by an individual or corporation.

Revaluation

The process of adjusting the book value of a company's assets to reflect their current market values

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