Rule: Nonrecognition treatment is accorded to a "like-kind" exchange of property used in the trade or business or held for investment (with the exception of inventory, stock, securities, partnership interests, and real property in different countries). "Like-kind" means the same type of investment (e.g., realty for realty or personalty for personalty, assuming the personal property falls within the same "asset class" for tax depreciation purposes).

Choice "b" is correct. The exchange of a corporate office building for a vacant lot qualifies for like-kind nonrecognition treatment. It is the exchange of realty for realty of property used in the trade or business or held for investment.

Choice "a" is incorrect. Although this answer option exchanges personal property used in a trade or business, the "asset classes" for the corporate jet and the heavy equipment differ.

Choice "d" is incorrect. The exchange of investment securities for antiques to be held as investments does not qualify for nonrecognition treatment. It is one of the exceptions identified in the rule, above.

Choice "c" is incorrect. The exchange of a road grader held in inventory for another road grader does not qualify for nonrecognition treatment. It is one of the exceptions identified in the rule, above.