In Order to Qualify for Like-Kind Exchange Treatment Under §

question 175

Multiple Choice

In order to qualify for like-kind exchange treatment under § 1031, which of the following requirements must be satisfied?

• A) The form of the transaction is a sale or exchange.
• B) Both the property transferred and the property received are held either for productive use in a trade or business or for investment.
• C) The exchange must be completed by the end of the second tax year following the tax year in which the taxpayer relinquishes his or her like-kind property.
• D) Only a. and b.
• E) a., b., and c.

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Definitions:

Auditory Ossicles

The three small bones in the middle ear that are critical in transmitting sound vibrations to the inner ear.

Axial

Relating to the central part of the body, which includes the head, neck, and trunk.

Intervertebral Disk

A fibrocartilaginous disc situated between adjacent vertebrae in the vertebral column, acting as a shock absorber and allowing movement.

Thoracic Region

The part of the body including the chest, between the neck and the abdomen, containing the thoracic vertebrae and ribs.