True-False: Insert T for True and F for False before the questions.

_____ 1. The holding period for property received in a qualifying like-kind exchange begins on the date the new property is received.

_____ 2. Boot received in a like-kind exchange never causes loss to be recognized.

_____ 3. A business airplane exchanged for a fleet of trucks, all used for the delivery of manufactured goods, is a qualifying like-kind exchange.

_____ 4. The holding period for boot in a like-kind exchange begins on the date of the exchange.

_____ 5. Both gain and loss are deferred in a like-kind exchange.

_____ 6. For a nonsimultaneous exchange to qualify for like-kind provisions, the taxpayer must identify the property to be acquired within 90 days and actually close the transactions within 180 days.

_____ 7. The taxpayer-use test for deferral of gain on an involuntary conversion requires the taxpayer to acquire property that has the same function as the involuntarily converted property that he or she used prior to the conversion.

_____ 8. Both gain and loss are deferred in a wash sale.

_____ 9. A condemnation is one type of involuntary conversion.

_____ 10. The loss on the total destruction of business property is always its adjusted basis regardless of fair market value.

_____ 11. Expected insurance settlements have no effect on the timing of the deduction for a casualty loss.

_____ 12. A theft loss of $10,000 cash by an individual results in a $10,000 casualty loss deduction.

_____ 13. To defer gain recognition on an involuntary conversion, qualifying property must be obtained within a specified time period.

_____ 14. If a taxpayers personal residence is involuntarily converted, the taxpayer can only defer gain by acquiring a new residence in the required time period using Internal Revenue Code Section 1033.

_____ 15. In a corporate formation, a taxpayer must transfer property along with services for the stock received for the acquired for the services to be used to meet the control requirement.

_____ 16. Internal Revenue Code Section 351, relating to transfers to a controlled corporation, can apply to transfers to both a new and an existing corporation.

_____ 17. Liabilities assumed by either a partnership or corporation have identical effects on the owners bases in their ownership interests.