The receipt of boot in a like-kind exchange causes the recognition of a realized gain.

Name: The receipt of boot in a like-kind exchange causes the recognition of a realized gain.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to the rules of a like-kind exchange, if a boot (cash or other non-like-kind property) is received, the realized gain must be recognized to the extent of the boot received. Therefore, a realized gain is recognized upon receipt of boot in a like-kind exchange.

The Receipt of Boot in a Like-Kind Exchange Causes the Recognition