The holding period of property received in a like-kind exchange:
A)Includes the holding period of the old asset exchanged.
B)Begins on the date of the exchange.
C)Begins on the date the exchange property is identified.
D)Begins up to 180 days prior to the exchange.

Question

Quizplus · Accepted Answer

The holding period of the new property received in a like-kind exchange includes the holding period of the old asset exchanged. This is established in Section 1223(1) of the Internal Revenue Code. Therefore, the taxpayer is treated as if they had held the new property for as long as they held the old property.

The Holding Period of Property Received in a Like-Kind Exchange