Tanner Inc.owns a fleet of passenger automobiles that it would like to dispose of in a nontaxable exchange.Which of the following would qualify as like-kind property?
A)Sports utility vehicles
B)Double decker buses
C)Dump trucks
D)Both a.and b.would qualify as like-kind.

Question

Quizplus · Accepted Answer

Like-kind property must be of the same general nature or character, such as passenger automobiles for sports utility vehicles. Dump trucks and double decker buses are not of the same general nature or character as passenger automobiles, so they would not qualify as like-kind property.