Which, if any, of the following exchanges qualifies for nonrecognition treatment as a § 1031 like-kind exchange?
A)Partnership interest for a partnership interest.
B)Inventory for inventory.
C)Securities for personalty.
D)Business realty for investment realty.

Question

Quizplus · Accepted Answer

A § 1031 like-kind exchange can occur between real property held for productive use in a trade or business or for investment purposes for other real property held for productive use in a trade or business or for investment purposes. Therefore, option D, a business realty for investment realty exchange, qualifies for nonrecognition treatment. The other options do not qualify because they are not like-kind exchanges.

Which, If Any, of the Following Exchanges Qualifies for Nonrecognition