In Order to Qualify for Like-Kind Exchange Treatment Under §

question 38

Multiple Choice

In order to qualify for like-kind exchange treatment under § 1031, which of the following requirements must be satisfied?

• A) The form of the transaction is a sale or exchange.
• B) Both the property transferred and the property received are held either for productive use in a trade or business or for investment.
• C) The exchange must be completed by the end of the second tax year following the tax year in which the taxpayer relinquishes his or her like-kind property.
• D) Only a. and b.
• E) a., b., and c.

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Definitions:

Airlines

Companies that provide air transport services for traveling passengers and freight.

Real Estate Market

A sector of the economy that deals with the buying, selling, and leasing of land, buildings, and properties.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.

Recession

A significant decline in economic activity across the economy, lasting longer than a few months, typically visible in real GDP, real income, employment, industrial production, and retail sales.