D is corrent. The requirement is to determine which exchange qualifies for nonrecognition of gain or loss as a like-kind exchange. The exchange of business or investment property solely for like-kind business or investment property is treated as a nontaxable exchange. Like-kind means "the same class of property." Real property must be exchanged for real property, and personal property must be exchanged for personal property. As business property can be exchanged for investment property, and real property can be exchanged for other real property, this is a like-kind exchange.
A is incorrect. Like-kind means "the same class of property." Real property must be exchanged for real property, and personal property must be exchanged for personal property.
B is incorrect. The exchange of business or investment property solely for like-kind business or investment property is treated as a nontaxable exchange. Like-kind means "the same class of property." However, US real property and foreign real property are not property of a like kind.
C is incorrect. The like-kind exchange rules do not apply to exchanges of stocks, bonds, notes, convertible securities, and the exchange of partnership interests.
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