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Tax treatment for land exchanges

Melissa owns a residential lot in Spring Creek that has appreciated substantially in value. She holds the lot for investment. She is exchanging the lot with her father for a residential lot in McComb that she also will hold for investment. Please identify any relevant tax issues for Melissa.

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Solution Preview

Since the lot Melissa owns has appreciated substantially, she would more than likely want to try and get the
exchange to qualify for § 1031 ...

Solution Summary

The solution provides a discussion for land exchanges in investment purposes, and the accounting treatment for the exchange.