Investors often use the like-kind exchange provisions in the tax code to defer recognition of gains when they want to dispose of an asset. These are complicated transactions which has lead to a small industry being created just to meet the requirements of the provisions. Unfortunately, there are two requirements of like-kind exchanges which are often messed up. If messed up, these result in nullifying all or part of the exchange benefit. (a) What are the requirements for like-kind exchange treatment for real property? For personal property?

(b) Of those requirements, which do you believe would be the two which are most often messed up, thereby nullifying all or part of the gain deferral?