### Question
How is the "nonrecognition transaction" defined?


### Answer
The term **nonrecognition transaction** is defined in *26 U.S.C. § 7701* as follows -

> 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**

