No taxable gain or loss is recognized on a like-kind exchange of an investment asset for a similar asset that will be held for investment if both assets consist of
A)Partnership interests.
B)Convertible debentures.
C)Mortgage notes
D)Rental real estate located in different states.
E)Common stock of companies in the same industry.

Question

Quizplus · Accepted Answer

The like-kind exchange rules apply to property held for investment or productive use in a trade or business, such as rental real estate. If both properties involved in the exchange are rental real estate located in different states, no taxable gain or loss is recognized. The other options do not qualify for like-kind exchange treatment.

No Taxable Gain or Loss Is Recognized on a Like-Kind