Vijay owns land $($adjusted basis of $$123,000)$ that he uses in his business. He exchanges the land and $$61,500$ in cash for a different parcel of land worth $$147,600.$

a$.$ Vijay has a realized loss of $

b$.$ Can Vijay avoid like$-$kind exchange treatment and recognize his realized loss?

$,$ because the $1031$ like$-$kind exchange provision

Therefore, Vijay the loss.