If a Taxpayer Exchanges Like-Kind Property Under § 1031 and Assumes

question 140

True/False

If a taxpayer exchanges like-kind property under § 1031 and assumes a liability associated with the property received, the taxpayer is considered to have received boot in the transaction.

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Definitions:

Filing Process

The systematic procedure of organizing and categorizing documents, records, or data for efficient retrieval and safekeeping.

Ready

Being in a suitable state for an activity, action, or situation; fully prepared.

Item

An individual article or unit, especially one that is part of a list, collection, or set.

Numeric Filing System

An organizational method that arranges files or records in order of assigned numbers.