An Exchange of Two Items of Personal Property (Personalty) That

question 19

True/False

An exchange of two items of personal property (personalty) that belong to different general business asset classes qualifies for nonrecognition under § 1031 as long as both properties are used in the taxpayer's trade or business.

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Definitions:

Superposition

A principle in geology that states in an undeformed sequence of sedimentary rocks, each layer is older than the one above.

Facies Change

A change in the characteristics of rock layers indicating a change in environment of deposition, such as from marine to terrestrial.

Aerial Distribution

The spatial spread or dispersion of a substance, organism, or feature through the atmosphere.

Unconformity

A discontinuity in sedimentary rock sequences indicating a period of erosion or non-deposition.