The basis of non-like-kind property received in an otherwise nontaxable exchange is the basis in the hands of the transferor at the date of the exchange.

Question

Quizplus · Accepted Answer

The basis of non-like-kind property received in an otherwise nontaxable exchange is generally the fair market value of the property at the time of the exchange, not the basis in the hands of the transferor.

The Basis of Non-Like-Kind Property Received in an Otherwise Nontaxable