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Date to complete exchange transaction; basis in property

For a transaction as a like kind exchange the property must received by the earlier of the due date including extension of the return for the year in which the transfer of the property being exchange occurred or by what day after the property given up in the exchange is transferred.

A. 30 days after the transfer
B. 60 days after the transfer
C. 45 days after the transfer
D. 180 days after the transfer

When no unlike property or boot is received, the basis for depreciation of property acquired in a nontaxable exchange is

A. The adjusted basis of the acquired property
B. The adjusted basis of the trade property
C. The FMV of the acquired property
D. The FMV of the trade property

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Solution Preview

Section 1031 discusses the like kind exchange transaction, but the dates come from the Starker case in the 1970s. The purchase of the acquired property must be completed within 180 days.

Answer is D.

In an exchange where ...

Solution Summary

The 160 word solution carefully explains each answer including calculations and an example.