In a like-kind exchange, the taxpayer:
A) avoids paying gain on the sale of investment property.
B) defers paying gain on the sale of investment property.
C) may use the exchange and then deduct a loss on the exchange.
D) is limited to a 5% capital gains tax.

Question

Quizplus · Accepted Answer

In a like-kind exchange, the taxpayer defers paying gain on the sale of investment property by exchanging it for a similar property, rather than avoiding it entirely.

In a Like-Kind Exchange, the Taxpayer