Final answer:
The sale of old property and the purchase of new like-kind property may or may not count as a like-kind exchange.
Step-by-step explanation:
The sale of old property and the purchase of new like-kind property may or may not count as a like-kind exchange. This statement is true. In a like-kind exchange, the properties involved must be of the same nature, character, or class. However, not all sales and purchases of properties qualify as like-kind exchanges.
For example, if you sell an old residential property and use the proceeds to purchase a new commercial property, this transaction would not qualify as a like-kind exchange because the properties are of different nature or class. On the other hand, if you sell an old residential property and use the proceeds to purchase a new residential property, this transaction would qualify as a like-kind exchange because the properties are of the same nature or class.