Final answer:
The exchange of land for stock does not qualify for like-kind treatment according to IRS Section 1031, as it requires real estate to be exchanged for real estate, and stocks are not considered like-kind to real property.
Step-by-step explanation:
The exchange of land held for investment purposes for stock in a real estate holding corporation held as an investment does not qualify for like-kind treatment. According to the Internal Revenue Service (IRS) regulations regarding Section 1031 exchanges, only real property can be exchanged for other real property in a like-kind exchange. Stocks, bonds, notes, or other securities or evidences of indebtedness or interest are not considered like-kind property to real estate.
Therefore, exchanging land for stock does not meet the criteria for a like-kind exchange, which must involve real estate for real estate, and such a transaction would not qualify for the tax deferral benefits that like-kind exchanges offer under Section 1031 of the Internal Revenue Code.