If Related Taxpayers Exchange Property Qualifying for a Like-Kind Exchange,the

question 31

True/False

If related taxpayers exchange property qualifying for a like-kind exchange,the properties must be retained for three years after the exchange to prevent recognition of gain resulting from the original exchange on a subsequent disposition of the property.

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Definitions:

Opportunity Cost

The cost of choosing one alternative over another, represented by the benefit foregone from not choosing the next best alternative.

Inefficient

Referring to a lack of effectiveness, not achieving maximum productivity; resulting in a waste of time, energy, or material.

Efficient

The state of achieving a maximum output from given resources, with minimal waste or inefficiency.

Normative Statement

Prescriptive assertions that express judgments about whether a situation is desirable or undesirable, reflecting values rather than facts.