Real Estate Math
A North Dakota property is sold in a 1031 exchange. The seller's relinquished property sold for $800,000 with an adjusted basis of $500,000. To defer all capital gains, the replacement property must be purchased for at least:
A$500,000
B$600,000
C$800,000✓ Correct
D$900,000
Explanation
To defer all capital gains in a 1031 exchange, the replacement property must be equal to or greater in value than the relinquished property's net sale price of $800,000, and all equity must be reinvested.
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