Question: Sometimes taxpayers should structure a transaction to avoid the application of like-kind provisions. Which of the following conditions is likely to cause a taxpayer to

Sometimes taxpayers should structure a transaction to avoid the application of like-kind provisions. Which of the following conditions is likely to cause a taxpayer to avoid like-kind treatment.

A) Expected higher tax rates in the future

B) Less Accelerated depreciation provisions expected in the future

C) A Decline in the value of the asset being disposed of

D) None of the Above

I know that the answer is C

I need to know the reason why it is a Decline in the value of the asset being disposed of.

I also would appreciate it if you could reference any IRS code so i can reference it.

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