Which of the following qualify as a like-kind exchange?
A)Inventory of a retail hardware store for inventory of a plumbing wholesaler.
B)Investment land for a building to be used in a trade or business.
C)General partnership interest for a limited partnership interest.
D)Rental house for a house to be used as a principal residence.
E)None of the above.

Question

Quizplus · Accepted Answer

A like-kind exchange involves exchanging one business or investment property for another similar property. Option B involves exchanging investment land for a building to be used in a trade or business, which qualifies as a like-kind exchange. Option A involves exchanging inventory items of different types, which is not a like-kind exchange. Option C involves exchanging interests in different types of partnerships, which is also not a like-kind exchange. Option D involves exchanging a rental property for a personal residence, which is not a like-kind exchange.

Which of the Following Qualify as a Like-Kind Exchange