In a nontaxable exchange between unrelated parties, the amount realized by the parties may not always be equal.
The amount realized by each party is the value of the property or asset received in the exchange.
However, in some cases, the value of the property received by one party may be different from the value of the property given up by that party. This could happen if the parties are exchanging assets with different values or if there are other considerations involved in the exchange, such as the assumption of liabilities or the receipt of cash or other assets in addition to the property being exchanged.
In any case, as long as the exchange meets the requirements for a nontaxable exchange, such as being for like-kind property and meeting certain timing and other conditions, the parties may be able to defer recognition of any gain or loss on the exchange until a future taxable event occurs.
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