"Like kind exchange"
Sec. 6. (a) "Like kind exchange" means the reciprocal exchange
of personal property between two (2) persons, when:
(1) the property exchanged is of the same kind or character,
regardless of grade or quality; and
(2) the persons exchanging the property both own the property
prior to the exchange.
(b) A "like kind exchange" may be a part of a transaction
involving additional consideration other than the exchanged
property.
(c) Notwithstanding subsection (a), a "like kind exchange" does
not occur when:
(1) the transaction involves more than two (2) persons; or
(2) one (1) party to the transaction, through agreement or
negotiation with the second party, acquires personal property
for the primary purpose of exchanging that property for like
kind property held by the second party.
As added by Acts 1980, P.L.52, SEC.1.
Last modified: May 28, 2006