Dispositions and RealizationSales and Dispositions include:Sales: Individual A sells land he owns for $175,000, which he purchased for $100,000. The gain from the sale is $75,000.Exchanges: Individual exchanges 100 shares of Y for 40 shares of XTrade-ins: Individual exchanges Old Car plus Cash for New CarCasualty losses: Often gives rise to a loss. But if compensated by insurance, could be a gain.Condemnations (by a government; some payment received)Example: Individual A owned land in City X, which he purchased for $100,000. City X offered to pay A $150,000 for the land, which A refused. City X took ownership of it via a condemnation proceeding, and A sued to receive $200,000. The judge awarded $175,000, which was paid, and is the proceeds from the disposition. The gain from the disposition is $75,000 ($175,000 - $100,000).Realization means:Significant change in ownership rights. A change in the value of property is not sufficient. Treas. Reg. Sec. 1.1001-1(a).