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CHAPTER 13: NONTAXABLE EXCHANGES (Sec 1031 and 121) LECTURE NOTES OVERVIEW OF PROPERTY TRANSACTIONS (SELF-STUDY) 1. The following models provide an overview of property transactions (see Concept Summary 13-1 in the text). Model for Gains Amount realized – Adjusted basis = Realized gain – Postponed (deferred) gain – Tax-free gain Capital gain = Recognized gain Ordinary income Model for Losses Amount realized – Adjusted basis = Realized loss – Postponed (deferred) loss – Disallowed loss Capital loss = Recognized loss Ordinary loss D