Plant asset exchanges can only be categorized as the exchange of similar assets.

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Plant asset exchanges can be categorized as the exchange of similar or non-similar assets. Exchange of similar assets is known as a like-kind exchange or a 1031 exchange, where plant assets with similar characteristics or use can be exchanged, such as machinery for machinery or vehicles for vehicles. However, plant asset exchanges can also involve the exchange of non-similar assets, where plant assets of different types or characteristics can be exchanged, such as machinery for land or buildings for equipment.

Plant Asset Exchanges Can Only Be Categorized as the Exchange