Oregon Tax Consultants Practice Exam 2026 – Complete Study Resource

Question: 1 / 400

What type of exchange includes tax implications on gains?

Non-taxable exchange

Like-kind exchange

Cash exchange

A cash exchange involves the transfer of assets along with cash or other property, which typically triggers tax implications on any gains realized from the transaction. In this scenario, when a property is sold and cash is received in addition to the property, the gain is recognized for tax purposes. This gain is calculated as the difference between the selling price and the basis of the property.

In contrast, a non-taxable exchange, like-kind exchange, and personal property exchange may be structured in ways that allow deferral of tax liabilities under certain conditions. For instance, like-kind exchanges allow for the deferral of capital gains taxes when an investment property is exchanged for another similar property. However, in a cash exchange, the presence of cash received directly results in taxable income, making it distinct in terms of tax implications.

Get further explanation with Examzify DeepDiveBeta

Personal property exchange

Next Question

Report this question

Download Oregon Tax Consultants Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy