The basic IRC Sec. 1001 formula is amount realized less adjusted basis equals gain realized (or loss realized). The gain realized is not necessarily the amount taxed; only the gain recognized is taxable. Tax law, however, provides that all gain realized is to be recognized, unless a specific exclusion applies. This course details the general rules for gain recognition as well as discusses exceptions to the general rule for like-kind exchanges, involuntary conversions, sale of a principal residence, and other various types of transactions.