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:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles, and also mediates sensory information.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Central Nervous

Pertains to the part of the nervous system consisting of the brain and spinal cord, which integrates information and coordinates all bodily functions.

Knee-Jerk Reflex

A rapid, automatic response to a stimulus, such as a physical tap, that causes the knee to jerk involuntarily.