Real Estate Math
An investor uses a 1031 exchange. The relinquished property's adjusted basis is $150,000 and it sells for $450,000. What is the deferred gain?
A$150,000
B$300,000✓ Correct
C$450,000
D$600,000
Explanation
Gain = Sale price − Adjusted basis = $450,000 − $150,000 = $300,000 deferred in a qualifying 1031 exchange.
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