Which of the following qualifies as a like-kind exchange of property?
I.Commercial retail building and its land for an office building and its land.
II.Louisiana Oil, Inc. common stock for Louisiana Oil, Inc. corporate bonds.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following qualifies as a like-kind exchange of property?
I.Commercial retail building and its land for an office building and its land.
II.Louisiana Oil, Inc. common stock for Louisiana Oil, Inc. corporate bonds.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

A like-kind exchange of property involves the exchange of real property for real property or personal property for personal property, and they must be of the same nature or character. Therefore, statement I is correct as it involves the exchange of commercial real estate for office real estate. Statement II is incorrect because exchanging stocks for bonds is not a like-kind exchange as they are considered different types of property.

Which of the Following Qualifies as a Like-Kind Exchange of Property