For tax purposes,the gain or loss on a traded asset is absorbed in the value of the new asset.

Name: For tax purposes,the gain or loss on a traded asset is absorbed in the value of the new asset.
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Quizplus · Accepted Answer

This is known as "tax deferral" and is a common feature of many investment and retirement accounts. When an asset is sold for a gain or loss, the tax liability is not incurred until the investor sells the new asset or makes a withdrawal from the account.

For Tax Purposes,the Gain or Loss on a Traded Asset