Which of the following statements with respect to a like-kind exchange is false?
A)Property of one class must be exchanged for property of the same class.
B)An exchange of inventory does not qualify as a like-kind exchange.
C)Personal property must be exchanged for personal property.
D)Sale of property and subsequent purchase of like-kind property will always qualify as a like-kind exchange.

Question

Quizplus · Accepted Answer

The statement "Sale of property and subsequent purchase of like-kind property will always qualify as a like-kind exchange" is false. To qualify as a like-kind exchange under Section 1031, the exchange must be simultaneous or occur within 180 days. Simply selling property and using the proceeds to purchase like-kind property at a later date does not qualify as a like-kind exchange.

Which of the Following Statements with Respect to a Like-Kind