P1-U08 · PART 1 · SOURCE CYCLE 2026-2027

Nonrecognition Property Transactions

Practice mapped questions Take Part 1 mock

Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.

Q1.Recall the rule for this EA objective in Income And Assets: Sale of a personal residence (e.g., IRC sec 121 exclusions)

$250,000

Q2.Recall the rule for this EA objective in Income And Assets: Installment sales (e.g., related parties, original cost, date of acquisition, possible recalculations and recharacterization)

A sale in which at least one payment is received after the tax year of sale

Q3.What is the basic involuntary-conversion nonrecognition idea under section 1033?

gain may be deferred when property is compulsorily or involuntarily converted into similar property or into money used to purchase replacement property within the replacement period the replacement property must be similar or related in service or use, with special rules for certain business/investment real property basis of the replacement property is reduced by deferred gain