Property Ownership
A North Dakota investor buys property in a 1031 exchange. This tax provision allows:
AAvoidance of all property taxes permanently
BDeferral of capital gains taxes when one investment property is exchanged for a like-kind investment property✓ Correct
CClaiming a tax deduction for appreciation
DExchanging residential property for commercial property tax-free
Explanation
A 1031 (like-kind) exchange under the Internal Revenue Code allows investors to defer capital gains taxes when they sell one investment property and reinvest the proceeds in another like-kind investment property within specified time limits.
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