The general rule regarding the exchanged basis in the new property received in a like-kind exchange is:
A)The basis is equal to the fair market value of the new property.
B)The basis is equal to the fair market value of the old property.
C)The basis is equal to the adjusted basis of the old property.
D)The basis is equal to the cost basis of the old property.
E)All of the choices are correct.

Question

Quizplus · Accepted Answer

The basis of the new property received in a like-kind exchange is equal to the adjusted basis of the old property. This means that the basis of the old property is carried over to the new property.

The General Rule Regarding the Exchanged Basis in the New