In October 2013,Ben and Jerry exchange investment realty in a § 1031 like-kind exchange.Ben bought his real estate in 2003 while Jerry purchased his in 2006.In addition to the realty,Ben receives Pearl,Inc.stock worth $10,000 from Jerry.Ben's realized gain is $30,000.On what date does the holding period for Ben's realty received from Jerry begin? When does the holding period for the stock he receives begin?

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In a like-kind exchange, the holding period for the property received includes the holding period of the property given up. Therefore, Ben's holding period for the realty received from Jerry begins in 2003. However, the holding period for the stock received begins on the date of the exchange, which is 2013.

In October 2013,Ben and Jerry Exchange Investment Realty in a §