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Like-Kind Property: which qualify under Section 1031?

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

Solution Preview

a. No. Stocks or bonds in a Sec 1031 trade. They are expressly excluded from Sec 1031 provisions.

b. Yes, these properties will quality. Both sides of an exchange must be business or investment property (land, ...

Solution Summary

For the seven different fact patterns in the problem, the solution gives a sentence or two of explanation about whether the exchange qualifies for Section 1031 and why.