A taxpayer acquires an asset through a nontaxable exchange of a capital asset.The holding period of the new capital asset begins with the exchange date.

Name: A taxpayer acquires an asset through a nontaxable exchange of a capital asset.The holding period of the new capital asset begins with the exchange date.
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Question

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In a nontaxable exchange, the holding period of the new asset includes the holding period of the old asset, not starting from the exchange date.

A Taxpayer Acquires an Asset Through a Nontaxable Exchange of a Capital