In a like-kind exchange,property owners must meet a number of conditions in order to be eligible to take advantage of this tax deferment.One criterion is for the exchange to be between "like-kind" properties.Which of the following exchanges represents an example of an eligible "like-kind" exchange?

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In a like-kind exchange, the exchanged properties must be of the same nature or character, regardless of grade or quality. Both a retail property and an office property are real property located in the U.S., so they qualify as like-kind properties. Choice A involves exchanging a property for a mortgage, which is not like-kind, choice B involves exchanging properties in different countries, and choice C involves exchanging a property for shares in a REIT, which is not considered like-kind property.

In a Like-Kind Exchange,property Owners Must Meet a Number of Conditions