Special Rules Apply to Like Kind Exchanges Between Related Persons

question 14

Multiple Choice

Special rules apply to like kind exchanges between related persons. Under these rules, related persons are:

• A)The taxpayer and a member of his/her family
• B)The taxpayer and a corporation in which the taxpayer has a 25% ownership
• C)The taxpayer and a partnership in which the taxpayer directly or indirectly owns a 25% interest in the capital or profits
• D)All of the above

---

Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls basic emotions and drives.

Emotions

Sophisticated emotional conditions that encompass an individual's internal experience, physical responses, and outward behaviors or reactions.

Cerebrum

The largest part of the brain, responsible for various higher functions like thought, action, reasoning, and creativity.

Hemispheres

Each of the two halves of the brain or the Earth, divided by either the cerebral fissure or the equator.