SALE OR EXCHANGE
sale or exchange. 1.Tax. A voluntary transfer of property for value (as distinguished from a
gift) resulting in a gain or loss recognized for federal tax purposes. 2. A transfer of property; esp.,
a situation in which proceeds of a sale are to be vested in another estate of the same character and
use. — Also termed (in both senses) sale and exchange. [Cases: Internal Revenue 3232; Taxation
998. C.J.S. Internal Revenue §§ 128–129, 490–491; Taxation § 1734.] [Blacks Law 8th]