Question
19. Which of the following transfers meet the exchange requirements for deferral under like-kind exchange provisions? a. Bonita sells her rental condominium in Park City
19. Which of the following transfers meet the exchange requirements for deferral under like-kind exchange provisions?
a. Bonita sells her rental condominium in Park City and uses the proceeds as a down payment to buy a rental condominium in Breckenridge.
b. Enrique Corporation sells its old pasta machine to Angelo Distributing Company and after shopping around for a few days, purchases a new Angelo Model 5 Pasta Machine from Angelo Distributing Company.
c. Habit Partnership trades 3 of its delivery vans to Cal's Cars and Trucks for 2 new delivery vans.
d. Louise owns an apartmens building in Milwaukee, which Rebecca offers to purchase. Louise is willing to part wih the property but does not want to recognize the substantial gain on the sale. She is willing to exchange he apartment for a lakefront resort lodge in Minnesota. Rebecca finds such a property and buys it from Ole. Then Rebecca exchanges the lodge for Louise's apartmen building.
e. Phong sells his drill press to Cower Company and purchases a new drill press from Tomzack Manufacturing Corporaion wih the proceeds from the sale.
20. Which of the following exchanges of property are like-kind exchanges?
a. Land traded for an airplane.
b. A warehouse used in a trade or business exchanged for land to beused as a personal residence.
c. Land in Greece held as an investment for a hotel in Rome.
d. A personal use computer for a business computer.
e. Business machines traded by Marcus and Travis. Marcus will use his new machine in his business. Travis uses his old machine and the machine from Marcus for personal use.
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