The general rule regarding the exchanged basis in the new property received in a like-kind exchange is:
A) The basis is equal to the fair market value of the new property.
B) The basis is equal to the fair market value of the old property.
C) The basis is equal to the adjusted basis of the old property.
D) The basis is equal to the cost basis of the old property.
E) All of the choices are correct.

Question

Quizplus · Accepted Answer

The general rule is that the property receives a carryover basis from the old property.

The General Rule Regarding the Exchanged Basis in the New