Which, if any, of the following exchanges qualifies for nonrecognition treatment as a § 1031 like-kind exchange?
A) Partnership interest for a partnership interest.
B) Inventory for inventory.
C) Securities for personalty.
D) Business realty for investment realty.
E) None of the above.

Question

Quizplus · Accepted Answer

The exchange of business realty for investment realty qualifies for nonrecognition treatment under § 1031, as both types of real estate are considered like-kind. The other options do not qualify because they involve different types of property that are not considered like-kind.

Which, If Any, of the Following Exchanges Qualifies for Nonrecognition