6 Qualifying property received in a nontaxable exchange has a cost basis for tax purposes. True or False True False 8 A taxpayer who exchanges property for an interest in a partnership never recognizes gain or loss on the exchange. True or False True False Mr. Lexon owns investment property with a $719,000 basis. If the property is worth only $500,000, Mr. Lexon would prefer a taxable disposition of the property over a like-kind exchange. True or False True False In a like-kind exchange in which both properties are subject to a mortgage, both parties to the exchange are treated as receiving boot equal to the relief of their respective mortgage True or False True False