A realized gain from an involuntary conversion under § 1033 that is not recognized for income tax purposes has no effect on E & P.

Name: A realized gain from an involuntary conversion under § 1033 that is not recognized for income tax purposes has no effect on E & P.
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Quizplus · Accepted Answer

A realized gain that is not recognized for tax purposes does not affect Earnings and Profits (E&P) because E&P is based on taxable income, and unrecognized gains do not contribute to taxable income.

A Realized Gain from an Involuntary Conversion Under § 1033