Cassie owns a Rembrandt painting she acquired on June 1,2008 as an investment.She exchanges the painting on September 5,2016,for a Picasso painting and marketable securities to be held as an investment.On what date does the Picasso painting's holding period begin?
A)June 1,2008
B)June 2,2008
C)September 5,2016
D)September 6,2016

Question

Quizplus · Accepted Answer

The holding period of the Picasso painting begins on June 1, 2008, because the exchange is a like-kind exchange, and the holding period of the original property (Rembrandt painting) carries over to the new property (Picasso painting).

Cassie Owns a Rembrandt Painting She Acquired on June 1,2008