Which of the following qualify as a like-kind exchange?
-A personal residence for a vacation home.
A)qualifies as a like-kind exchange
B)does not qualify as a like-kind exchange

Question

Quizplus · Accepted Answer

A like-kind exchange, under Section 1031 of the Internal Revenue Code, involves the exchange of real property used for business or investment purposes for another property of like-kind. Exchanging a personal residence for a vacation home does not qualify because both properties are for personal use, not business or investment purposes.

Which of the Following Qualify as a Like-Kind Exchange