Gain realized on a like-kind exchange is excluded from income in all of the following circumstances except:
A)When boot is given.
B)When boot is received.
C)When a liability is assumed.
D)Both when boot is received and when a liability is assumed.

Question

Quizplus · Accepted Answer

When boot is received in a like-kind exchange, the gain realized is not excluded from income; instead, it becomes taxable to the extent of the boot received.

Gain Realized on a Like-Kind Exchange Is Excluded from Income