The holding period of like-kind property received in a like-kind exchange includes the holding period of the property given up.

Question

Quizplus · Accepted Answer

This is true. According to the Internal Revenue Service (IRS), when property is exchanged in a like-kind exchange, the holding period for the newly acquired property includes the holding period of the property given up. This means that taxpayers can continue to defer capital gains taxes on the like-kind property they received in the exchange for as long as they hold it.

The Holding Period of Like-Kind Property Received in a Like-Kind