What are like-kind exchanges and why are they important to the world of taxation?© BrainMass Inc. brainmass.com October 10, 2019, 7:35 am ad1c9bdddf
A like-kind exchange is an event whereby a taxpayer disposes of an asset and acquires a substantially similar asset without incurring an income tax liability. In general, to meet the definition of a like-kind exchange (a) the asset being sold must be an investment property and can't be a personal residence, (b) the asset being purchased with the proceeds must ...
This solution of 380 words discusses what a like-kind exchange is and why it is important to taxpayers. References used are included.