Finance
Iowa's 1031 (like-kind) tax-deferred exchange allows an Iowa investor to:
ASell a property and immediately pocket all proceeds tax-free
BDefer capital gains taxes by reinvesting the proceeds into a qualifying like-kind replacement property within specified deadlines✓ Correct
CExchange residential property for commercial property only
DAvoid all Iowa property taxes on investment properties
Explanation
Under IRC Section 1031, an Iowa investor can defer federal capital gains taxes when selling an investment property by reinvesting in a like-kind replacement property. Key deadlines: 45 days to identify replacement property and 180 days to close on it.
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