Escrow & Title
In a 1031 exchange, a real estate investor:
AExchanges one property for personal property of equal value
BDefers capital gains taxes by reinvesting proceeds from a sale into like-kind property✓ Correct
CExchanges properties with another investor simultaneously
DConverts a residential property to commercial use
Explanation
A Section 1031 exchange allows an investor to defer capital gains taxes by selling an investment property and reinvesting the proceeds into a like-kind replacement property.
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