Sometimes taxpayers should structure a transaction to avoid the application of like-kind provisions.Which of the following conditions is likely to cause a taxpayer to avoid like-kind treatment?
A)expected higher tax rates in the future
B)less accelerated depreciation provisions expected in the future
C)a decline in the value of the asset being disposed of
D)none of the above

Question

Quizplus · Accepted Answer

If the value of the asset being disposed of is declining, the taxpayer might prefer to recognize a loss immediately rather than defer it through like-kind exchange provisions.

Sometimes Taxpayers Should Structure a Transaction to Avoid the Application