Mrs. Cooley exchanged 400 shares of stock for corporate bonds. If the stock and bonds were issued by the same corporation, they are like-kind properties, and the exchange is nontaxable.

Question

Quizplus · Accepted Answer

The exchange of stock for corporate bonds does not qualify as a like-kind exchange under U.S. tax law, as stocks and bonds are considered different types of property with different rights and characteristics. Like-kind exchanges typically apply to real estate transactions.

Mrs Cooley Exchanged 400 Shares of Stock for Corporate Bonds