A realized loss whose recognition is postponed results in the temporary recovery of more than the taxpayer's cost or other basis.

Question

Quizplus · Accepted Answer

A realized loss whose recognition is postponed does not result in the recovery of more than the taxpayer's cost or other basis; it merely delays the recognition of the loss for tax purposes, not allowing for any recovery beyond the original investment.

A Realized Loss Whose Recognition Is Postponed Results in the Temporary