Why might a taxpayer want to avoid having an exchange qualify as a like-kind exchange? can you provide an example of a transaction that would cause a taxpayer to want to avoid like-kind treatment and provide guidance as how to avoid qualifying under Sec. 1031. why you think a taxpayer would want to qualify for like-kind treatment based on the facts you stated. There are various categories for property, such as Sec. 1231, Sec. 1245, and Sec. 1250.