Property is acquired in a qualifying like-kind exchange.The acquired property is sold three months after it is acquired. Which of the following is correct?
A)Since the holding period of the property given up in the exchange tacks to the holding period of the acquired property, the holding period of the acquired property could be long-term.
B)The holding period of the acquired property is short-term.
C)The holding period of property acquired in a like-kind exchange is always long-term.
D)When property acquired in a like-kind exchange is disposed of, the holding period is not relevant.
E)None of these.

Question

Quizplus · Accepted Answer

Under the rules of like-kind exchange, the holding period of the property given up in exchange tacks to the holding period of the acquired property. Therefore, if the property given up was held for a long-term, then the acquired property's holding period could be long-term as well.

Property Is Acquired in a Qualifying Like-Kind Exchange