Which of the following statements is false?
A. In a like-kind exchange under IRC§1031, the assumption or payoff of liabilities by one party to the exchange results in boot received by the other party.
B. If boot is received in a §1031 like-kind exchange and gain is recognized, the following formula correctly calculates the basis of the like-kind property received: the fair market value of like-kind property received, less any gain NOT recognized (less deferred or postponed gain).
C. The receipt of cash, the relief from debt, or receipt on non-like-kind property by a party to a IRC§1031 exchange is colloquially referred to by tax practitioners as “boot.” The amount of boot received sets the ceiling on the amount of gain that is recognized for tax purposes.
D. The taxpayer who assumes a liability in a §1031 like-kind exchange receives boot in the amount of the liability and may recognize gain up to that amount.
E. Only A & C are true.