Complete the statements below regarding the distinction between a loss that is not recognized on a nontaxable exchange and a loss that is not recognized on the sale or exchange of a personal use asset.

A loss that is not recognized on a nontaxable exchange is This results in

recovery of the taxpayer's basis for the property.

A loss that is not recognized on the sale or exchange of a personal use asset is This results in recovery of the

taxpayer's basis for the property.