Tyler had undeveloped land but he actually needed a warehouse $($all assets are business$-$

use$).$ He sold the land for cash of $$450,000,$ and deposited the money with a third$-$party

intermediary on April $1$st$.$ On April $20,$ Tyler identified two possible warehouses he could

buy $($each was roughly the value of his land$).$ On April $25$ he made an offer on the first

warehouse but was rejected! On May $1$ his offer on the second warehouse was accepted

by Scott! On May $3,$ the intermediary transferred $$500,000($$$450,000$ from the original

property plus $$50,000$ from Tyler to even the exchange$)$ to the seller and conveyed the

warehouse to Tyler. Does this qualify for like$-$kind exchange treatment?

  

Answer rating: 100% (QA)

No this scenario does not qualify for likekind exchange treatment Likekind exchange treatment under ... View the full answer