When a Taxpayer Is Released from a Liability in a Like-Kind

question 10

Multiple Choice

When a taxpayer is released from a liability in a like-kind exchange,the amount of the release:

• A)Never triggers gain recognition.
• B)Always triggers a gain to be recognized.
• C)Is treated as boot and may trigger gain recognition.
• D)Does not affect the like-kind exchange in any way.

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Definitions:

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