Question: Evaluate the following statement: The underlying rationale for the non-recognition of a gain or loss resulting from a like-kind exchange is that the exchange constitutes

Evaluate the following statement: The underlying rationale for the non-recognition of a gain or loss resulting from a like-kind exchange is that the exchange constitutes a liquidation of the taxpayers investment. Discuss why a taxpayer might want to avoid having an exchange qualify as a like-kind exchange. Support your response with one (1) real-world example.

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