Indiana Code Title 6. Taxation § 6-2.5-1-6

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.

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