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


### Answer
Under *26 U.S.C. § 897*, **nonrecognition provision** is defined as:

> any provision of this title for not recognizing gain or loss

#### Citation:
  - *26 U.S.C. § 897*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart D-Miscellaneous Provisions**

