Question 1
Discuss why a taxpayer would want to avoid like-kind exchange provisions.
Question 2
All of the following conditions would encourage a taxpayer to avoid like-kind exchange treatment on the disposition of an otherwise qualifying asset
except◦ expected lower tax rates in the future.
◦ the availability of net operating loss carryovers.
◦ the disposition of a capital gain asset when the taxpayer has a capital loss carryover.
◦ a realized loss on the asset disposed of.