### Question
Can you define what inventory exchange means?


### Answer
**Inventory exchange** is defined as the following in *26 U.S.C. § 4662*:

> any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(a)(1)

#### Citation:
  - *26 U.S.C. § 4662*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 38-ENVIRONMENTAL TAXES > Subchapter B-Tax on Certain Chemicals**

