Which of the following statements is not true with regard to like-kind exchanges?
A)Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange.
B)The holding period of like-kind property received includes the holding period of the property exchanged.
C)A loss is always recognized if the taxpayer transfers non-like-kind personal-use property (e.g.,a personal-use car)in an otherwise like-kind exchange.
D)The basis of property received in an exchange is equal to the basis of the property exchanged less the boot received plus the gain recognized and less any loss recognized.

Question

Quizplus · Accepted Answer

This statement is not true. A loss is not always recognized if the taxpayer transfers non-like-kind personal-use property in an otherwise like-kind exchange. If the taxpayer receives boot (cash or other non-like-kind property) in addition to the like-kind property, then the recognized loss is limited to the lesser of the realized loss or the boot received. If no boot is received, then no loss is recognized.

Which of the Following Statements Is Not True with Regard