A taxpayer that receives boot in a like-kind exchange resulting in a gain recognizes as gain the lesser of the fair market value of the boot received or the gain realized.

Question

Quizplus · Accepted Answer

This statement is true. In a like-kind exchange, any boot received (cash or non-like-kind property) is taxable as gain to the extent of its fair market value or the gain realized, whichever is lesser.

A Taxpayer That Receives Boot in a Like-Kind Exchange Resulting