1. In most instances, when an item is sold, exchanged, or otherwise 1. In most instances, when an item is sold, exchanged, or otherwise disposed of, the tax law requires recognition of gain and, less frequently, loss. However, in some instances, tax law permits the deferral of the gain or loss. Select the example(s) in which a deferral may be permitted:Wash salesLike-kind exchange of real propertyInvoluntary conversionsAny exchange of property for stockThe exchange of stock in a tax-free reorganizationLawSocial ScienceTax law ACCT 110
