The tax basis in property received in a like-kind exchange in which no gain or loss is recognized is a:
A)FMV basis
B)Cost basis
C)Substituted basis
D)Carryover basis

Question

Quizplus · Accepted Answer

In a like-kind exchange where no gain or loss is recognized, the tax basis of the property received is a substituted basis, which is the adjusted basis of the property given up, adjusted for any additional money paid or received.

The Tax Basis in Property Received in a Like-Kind Exchange