On June 10, 2017, Ebon, Inc. acquired an office building as a result of a like-kind exchange. Ebon had given up a factory building that it had owned for 26 months as part of the like-kind exchange. Which of the statements below is correct?

Question

Quizplus · Accepted Answer

According to the IRS, the holding period of the property received in a like-kind exchange includes the holding period of the property given up. Therefore, the office building's holding period will be considered as starting on the same date as the factory building's holding period (i.e., June 10, 2017), and will include the 26 months that the factory building was held by Ebon, Inc.