The Holding Period of Property Received in a Like-Kind Exchange

question 20

Multiple Choice

The holding period of property received in a like-kind exchange:

• A) Includes the holding period of the old asset exchanged.
• B) Begins on the date of the exchange.
• C) Begins on the date of the exchange property is identified.
• D)Begins up to 180 days prior to the exchange.

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Definitions:

Interest Income

Income earned from deposit accounts such as savings accounts, CDs, or from loans and bonds issued by the taxpayer.

Workers' Compensation

Insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Taxable

Refers to income or transactions that are subject to tax by governmental entities according to certain rules and regulations.

Prize or Award

Monetary or material value received as a result of winning a contest or receiving an accolade, which may be taxable income.