Which of the following statements about like-kind exchanges is false?
A) Like-kind property must be held for either business or investment use.
B) Businesses cannot engage in like-kind exchanges of inventory.
C) Businesses cannot engage in like-kind exchanges of intangible assets.
D) Business cannot exchange undeveloped land for developed real estate.

Question

Quizplus · Accepted Answer

Like-kind exchanges allow for the exchange of both developed and undeveloped real estate as long as both properties are held for business or investment purposes. This means businesses can indeed exchange undeveloped land for developed real estate, making statement D false.

Which of the Following Statements About Like-Kind Exchanges Is False