Question: Losses on exchanges must be deferred. A loss on an involuntary conversion is never deferred. In contrast, a loss on the sale of a principal

Losses on exchanges must be deferred. A loss on an involuntary conversion is never deferred. In contrast, a loss on the sale of a principal residence is never recognized.
Explain why losses on the sale of a principal residence are treated differently from losses on exchanges and involuntary conversions.

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