True or False

1. In 2016, the basis of a taxpayer's replacement residence is equal to the cost of the replacement residence less the gain which was deferred on the sale of the old residence.
2. The exchange of shares of stock does not qualify for like-kind exchange treatment.
3. If a taxpayer sells his personal residence and purchases a new residence, realized gain may be recognized.
4. Cows used in a farming business are Section 1245 property.
5. If not entirely used in one sale, the unused portion of the $250000 exclusion on the sale of a taxpayer's principal residence may be used to reduce the recognized gain on the sale of the taxpayer's next residence.
6. the condemnation of property is not an involuntary conversion, since it is done pursuant to a government decree.
7. There is no limit on the amount of capital losses that an individual may deduct against ordinary income.
8. A taxpayer's personal automobile is a capital asset.
9. Taxpayers are allowed to offset net short-term capital losses with net long-term capital gains.
10. The exchange of inventory does not qualify for like-kind exchange treatment.
11. If a capital asset acquired August 5, 2015 is sold on February 6, 2016, any gain is a short-term capital gain.
12. The exclusion of gain on the sale of a personal residence may be elected only by a taxpayer who has owned three or more residences.