Eva exchanges a pick-up truck that she has held for personal use plus $19,000 for a new pick-up truck which she will use exclusively in her sole proprietorship business.This exchange qualifies for nontaxable exchange treatment.

Question

Quizplus · Accepted Answer

The exchange does not qualify for nontaxable treatment because the old truck was held for personal use, and nontaxable exchanges under Section 1031 require both properties to be held for business or investment purposes.

Eva Exchanges a Pick-Up Truck That She Has Held for Personal