An Exchange of Two Items of Personal Property (Personalty) That

question 19

True/False

An exchange of two items of personal property (personalty) that belong to different general business asset classes qualifies for nonrecognition under § 1031 as long as both properties are used in the taxpayer's trade or business.

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Definitions:

School-Age Children

Typically refers to children in the age group that spans from entering kindergarten through the onset of puberty.

Logic

The study of reasoning, or the science that investigates the principles governing correct or reliable inference.

Concrete Things

refer to objects that are tangible, visible, and touchable, as opposed to abstract concepts.

Information-Processing Theory

The idea that human cognition and comprehension occurs step by step, similar to the way that input, analysis, and output occur via computer.