Escrow & Title
A Mississippi real estate investor completes a 1031 like-kind exchange. The exchange allows them to:
AAvoid all taxes on the transaction permanently
BDefer capital gains taxes by reinvesting proceeds into a replacement property of equal or greater value✓ Correct
CExchange any type of property for another, regardless of type
DReduce depreciation recapture taxes
Explanation
IRC Section 1031 allows investors to defer (not eliminate) capital gains taxes on the sale of investment or business-use real property by reinvesting the proceeds into a like-kind replacement property of equal or greater value within specified time limits.
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