Which of the Following Statements Is Not True with Regard

question 76

Multiple Choice

Which of the following statements is not true with regard to like-kind exchanges?

• A)Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange.
• B)The holding period of like-kind property received includes the holding period of the property exchanged.
• C)A loss is always recognized if the taxpayer transfers non-like-kind personal-use property (e.g.,a personal-use car)in an otherwise like-kind exchange.
• D)The basis of property received in an exchange is equal to the basis of the property exchanged less the boot received plus the gain recognized and less any loss recognized.

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Definitions:

Donald Boudreaux

An American economist known for his work in free market economics and public choice theory, and for being a prolific writer on these subjects.

Private Property

Assets or possessions owned by individuals or corporations and protected by law from unauthorized use or trespass by others.

Alternative Uses

The different purposes or applications a resource can be used for, highlighting economic choices and trade-offs.

Capital Goods

Long-lasting goods acquired and used by businesses to produce goods and services and contribute to their productive capacity.