9. What are some examples of property that may not qualify for exchange?

In addition to the non-qualifying property previously discussed, examples of property which probably will not meet the qualified use test are:

  • Land which was acquired for the express purpose of subdivision and resale and was only held long enough to effect such subdivision and resale
  • Homes held for sale by speculation builders, such as builder's inventory of unsold homes
  • Any transaction which constitutes a sale followed by a reinvestment in other property, whether or not the replacement property is considered to be like-kind, wherein the transfers are not reciprocal and interdependent, and are absent an exchange agreement

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