Complex sentence: Amount Realized, under U.S. Federal income tax law, is defined by § 1001 (b) of Internal Revenue Code, and is one of two variables in the formula used to compute gains and losses when determining gross income for tax purposes.
Split into simpler sentences: Amount realized, under US federal income tax law, is defined by § 1001 (b) of Internal Revenue Code. It is one of two variables in the formula used to compute gains and losses to determine gross income for income tax purposes.