Escrow & Title

In a Kansas 1031 exchange (like-kind exchange), a taxpayer who sells investment property can defer capital gains taxes by:

ASelling and immediately reinvesting in any asset class
BReinvesting in like-kind real property within specific time limits (45-day identification, 180-day closing)✓ Correct
CPaying a reduced 10% tax rate on gains
DDonating the proceeds to a qualified charity

Explanation

A Section 1031 like-kind exchange allows investors to defer capital gains taxes by reinvesting sale proceeds into qualifying replacement real property within 45 days (identification) and 180 days (closing).

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