1. Why does the tax code allow taxpayers to defer gains on like-kind exchanges? How do the tax laws ensure that the gains (or losses) are deferred and not per- manently excluded from a taxpayer's income?
2. Compare and contrast the like-kind property requirements for real property and for personal property for purposes of qualifying for a like-kind exchange. Explain whether a car held by a corporation for delivering documents will qual- ify as like-kind property with a car held by an individual for personal use.