Lola owns land as an investor. She exchanges the land for a warehouse which she leases to a tenant who uses it to store his business inventory. The exchange does qualify for like-kind exchange treatment.

Question

Quizplus · Accepted Answer

The exchange of land for a warehouse qualifies for like-kind exchange treatment as both properties are real estate and being used for investment purposes. The fact that the warehouse is being leased to a tenant for business purposes does not affect the eligibility for like-kind exchange treatment.

Lola Owns Land as an Investor