Question

In a delayed swap, for it to qualify as a like-kind exchange, which of the following requirements must be satisfied?

a) The properties exchanged must have equal market values
b) The exchange must involve different types of assets
c) The transaction must be completed within 30 days
d) Both parties must be unrelated to each other

Answer 1

None of the options provided are correct. A like-kind exchange, according to IRS Section 1031, emphasizes on the timing of the exchange rather than equal market values, asset types, or the relationship between parties.

Step-by-step explanation:

In a delayed swap, to qualify as a like-kind exchange under Internal Revenue Code Section 1031, neither the properties needing to have equal market values nor needing to involve different types of assets, nor the parties being unrelated is the primary concern. The central requirement is that the transaction must be completed within certain time limits. Specifically, the replacement property must be identified within 45 days of the sale of the relinquished property, and the exchange must be completed within 180 days of the sale. Therefore, the correct answer is none of the options provided. The primary focus is on the timing of the identification and receipt of the exchange property.