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I:12-26 Which exchanges qualify as like-kind exchanges

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Like-Kind Property. Which of the following exchanges qualify as like-kind exchanges
under Sec. 1031?

a. Acme Corporation stock held for investment purposes for Mesa Corporation stock
also held for investment purposes
b. A motel used in a trade or business for an apartment complex held for investment
c. A pecan orchard in Texas used in a trade or business for an orange grove in Florida
used in a trade or business
d. A one-third interest in a general partnership for a one-fourth interest in a limited partnership
e. Inventory for equipment used in a trade or business
f. Unimproved land held as an investment for a warehouse used in a trade or business
g. An automobile used as a personal-use asset for marketable securities held for investment

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Solution Summary

The law with respect to tax deferred exchanges is cited, and then each situation is explained in a single sentence as to whether it qualifies for Section 1031 treatment.

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Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the ...

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