A transaction is taxable if the applicable tax law requires gain or loss to be recognized. 

Generally, if you dispose of an asset in exchange for another asset or cash, any gain or loss is taxable. 

There are some exceptions in the tax law that can apply to prevent the recognition of gain or loss in certain instances. Please consult your own professional advisors before making any tax, legal or accounting decisions.

NOTE: Lukka does not provide tax advice. The statements above are general in nature and do not address how the application of the tax rules can vary based on a taxpayer’s actual facts. Please consult a tax professional on how the tax rules apply to your specific facts.

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