Question

(TCO D) Which of the following would not qualify as a 1031 exchange?

a. Inventory for an automobile

b. A printer for a computer

c. Land for an office building

d. The trade of an apartment building for a store building

Answer 1

Which of the following would not qualify as a 1031 exchange?

Ans: A  Inventory for an automobile

There are, however, some types of assets and property that do not qualify for non-recognition treatment under Section 1031, such as:

1) Stock in trade or other property held primarily for sale: The exclusion encompasses two aspects: A) “Stock in trade,” which is property held for sale to customers in the ordinary course of the taxpayer’s trade or business resulting in gain taxed as ordinary income; and; B) Property held primarily for sale, which is a more expansive category of excluded property.