Finance
What is a '1031 exchange' (like-kind exchange) in Delaware real estate?
AA program allowing homeowners to exchange primary residences
BAn IRS provision allowing investors to defer capital gains taxes by exchanging one investment property for another of like-kind✓ Correct
CAn exchange of two properties between adjacent Delaware neighbors
DA program for exchanging time-share interests
Explanation
A 1031 (like-kind) exchange under Section 1031 of the IRS Code allows real estate investors to defer federal capital gains taxes when selling investment property by reinvesting the proceeds into a qualifying like-kind replacement property within specified timeframes.
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