Finance
What is a '1031 exchange' (like-kind exchange) and can Delaware investment property owners use it?
AA Delaware state tax deferral program for senior homeowners
BA federal tax provision allowing investors to defer capital gains taxes by reinvesting the proceeds from the sale of investment property into like-kind replacement property — Delaware investment property owners can participate✓ Correct
CAn exchange of real property for personal property under Delaware law
DA program limited to commercial properties — residential rental properties do not qualify
Explanation
Under IRC Section 1031, investors can defer capital gains taxes by selling investment property and reinvesting proceeds into qualifying like-kind replacement property. Strict rules apply: 45-day identification period, 180-day closing deadline, use of a qualified intermediary, and like-kind requirements. Delaware investment properties qualify — residential rentals, commercial properties, and land all qualify.
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