IRS Section 47

IRS Section 47 provides rules for how certain property transactions qualify for tax deferral or exclusions, especially regarding properties used in trade or business, or for investment. It outlines specific types of transactions—like mergers, reorganizations, or rolling over property—that allow taxpayers to defer recognizing gains or losses. Essentially, Section 47 helps ensure that when assets are transferred or restructured under approved circumstances, taxpayers aren't immediately taxed on the gains, promoting business reorganization while maintaining tax compliance. This section is integral to understanding how specific types of property exchanges are treated under U.S. tax law.