If each party in a like-kind exchange assumes a liability of the other party,only the net liability given or received is boot.

Name: If each party in a like-kind exchange assumes a liability of the other party,only the net liability given or received is boot.
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Question

Quizplus · Accepted Answer

This is true according to the IRS guidelines for like-kind exchanges. Only the net amount of liabilities assumed by each party is considered boot, which is taxable in a like-kind exchange.

If Each Party in a Like-Kind Exchange Assumes a Liability