If related parties complete a qualified likekind exchange ho

If related parties complete a qualified like-kind exchange, how long must the parties wait before disposing of the property exchanged to insure that any realized gain on the transfer is not recognized?

No waiting.

30 days.

6 months.

1 year.

2 years.

Solution

Answer : Option E (2 years)

The related parties must wait for not less than 2 years befor disposing of the property exchanged to insure no realized gain on transfer is recognized.