Final answer:
The exchange of a personal residence for a store building can qualify as a like-kind exchange under certain conditions. Correct option is a)
Step-by-step explanation:
The exchange of a personal residence for a store building can qualify as a like-kind exchange under Section 1031 of the Internal Revenue Code, depending on certain conditions.
In order for the exchange to qualify, both properties must be held for productive use in a trade or business or for investment purposes. Additionally, the properties must be of like-kind, meaning they are of a similar nature or character.
For example, if the personal residence is being used as a rental property and the store building is also being used for a business, the exchange may qualify for tax-deferred treatment. However, if the personal residence is being used solely for personal purposes, it may not qualify as a like-kind exchange.