All of the Following Are True Except

question 46

Multiple Choice

All of the following are true except:

• A)A nonsimultaneous exchange may never qualify as a like-kind exchange.
• B)Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange.
• C)A loss may be recognized on non-like-kind property (boot)if the taxpayer transfers the boot in an otherwise like-kind exchange.
• D)The holding period of like-kind property received includes the holding period of the property exchanged.

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Definitions:

Congress

Congress is the bicameral legislature of the federal government in the United States, consisting of two houses: the Senate and the House of Representatives.

Concurrent Powers

Powers that are shared by both the federal and state governments in the United States.

Supremacy Clause

A clause in the U.S. Constitution declaring that federal law takes precedence over state law when the two are in conflict.

Preempts

Refers to the legal principle that federal law takes precedence over state laws in areas where the federal government has been granted authority.