EXCHANGE OF LIKE-KIND PROPERTY:FOREIGN REAL
01.Core Concepts
ESTATE EXAMPLE Blanche owns a hotel in Salem, Massachusetts. She has always wanted to own real estate abroad, and an opportunity arose for her to purchase the Killarney Hotel in Ireland. Both properties are worth the same amount of money, so Blanche trades her hotel in Salem for the Killarney Hotel. Despite the fact that both of the properties were used in a trade or business, or for the production of income, U.S. and foreign real estate are not like-kind assets; therefore, Blanche must recognize any gain she realizes on the Salem hotel in the year of the transfer.