Final answer:
The option that does not qualify as a like-kind exchange is a building used in trade or business for land since buildings and land are of different classes and the former is depreciable while the latter is not.
Step-by-step explanation:
A like-kind exchange, also known as a 1031 exchange, is a swap of one business or investment asset for another. Under the United States Internal Revenue Code Section 1031, a like-kind exchange can be utilized to defer capital gains tax that would otherwise be owed on the sale of the asset. However, for an exchange to qualify as like-kind, the assets must be of the same nature, character, or class.
The like-kind exchange that does not qualify among the options provided is: A building used in trade or business for land used in trade or business. This is because buildings and land are considered different in character. Buildings are depreciable property, whereas land is not. Hence, exchanging a building for land would not meet the specific criteria for a like-kind exchange as they are not considered similar in nature or class within the meaning of the tax code.
Other examples of property that could be involved in a like-kind exchange include a house, land, art, rare coins or stamps, but again, these items have to be similar in nature to the exchanged property to qualify.