Final answer:
The accurate statement regarding a like-kind exchange is that no gain will be recognized unless the taxpayer receives boot (option d). In the context of a like-kind exchange, if boot is involved, the amount of gain recognized is the lesser of the value of the boot or the realized gain on the transaction.
Step-by-step explanation:
The question relates to the tax treatment of like-kind exchanges under the United States Internal Revenue Code. Among the statements provided regarding like-kind exchanges, the accurate one is: d) no gain will be recognized unless the taxpayer receives boot. A like-kind exchange, also known as a 1031 exchange, involves the exchange of real property used for business or held as an investment solely for other business or investment property that is the same type or "like-kind". This kind of transaction typically has tax-deferral benefits.
When a like-kind exchange takes place, the basis of the new property received becomes essentially the same as the basis of the property given up, adjusted for any additional cash (boot) paid or received. If boot is involved in the exchange, the amount of gain recognized is the lesser of the fair market value of the boot or the realized gain on the transaction. Therefore, if there is no boot, usually no gain or loss is recognized.
To summarize the options:
a) Incorrect - Inventory cannot be used in a like-kind exchange.
b) Incorrect - The amount of gain recognized does not decrease the basis in the property received, it's the other way around: the gain increases the basis.
c) Incorrect - Gain recognized is not necessarily equal to the gain realized plus the boot received; it is the lesser of the realized gain or the value of the boot.
d) Correct - No gain will be recognized unless the taxpayer receives boot, as per the 1031 like-kind exchange rules.