Which of the following can be income deferral transactions?
I.Exchanges of like-kind property.
II.Involuntary conversions of property.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following can be income deferral transactions?
I.Exchanges of like-kind property.
II.Involuntary conversions of property.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Both exchanges of like-kind property and involuntary conversions of property are valid income deferral transactions. In both cases, the taxpayer is allowed to defer recognition of any gain on the transaction until a later date.

Which of the Following Can Be Income Deferral Transactions