### Question
How does the law define nonrecognition transaction?


### Answer
Under *26 U.S.C. § 7701*, **nonrecognition transaction** is defined as:

> any disposition of property in a transaction in which gain or loss is not recognized in whole or in part for purposes of subtitle A

#### Citation:
  - *26 U.S.C. § 7701*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

