Property Is Acquired in a Qualifying Like-Kind Exchange

question 55

Multiple Choice

Property is acquired in a qualifying like-kind exchange.The acquired property is sold three months after it is acquired. Which of the following is correct?

• A)Since the holding period of the property given up in the exchange tacks to the holding period of the acquired property, the holding period of the acquired property could be long-term.
• B)The holding period of the acquired property is short-term.
• C)The holding period of property acquired in a like-kind exchange is always long-term.
• D)When property acquired in a like-kind exchange is disposed of, the holding period is not relevant.
• E)None of these.

Know the legal outcomes related to disputes involving assignments and third-party rights.

Understand the effect of anti-assignment clauses in contracts.

Differentiate between the roles and rights of assignors and assignees in the assignment process.

Grasp the legal distinctions between personal and non-personal contracts in terms of assignment possibility.

---

Definitions:

Aversion To Ambiguity

A preference to avoid options for which the probability of outcomes is unknown, indicating a dislike for uncertain situations.

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.

False Consensus

The cognitive bias that leads people to overestimate the extent to which their beliefs, values, opinions, or habits are normal and typical of those of others.

Implementation Costs

Expenses associated with putting a newly adopted system, plan, or policy into effect.