Finance

What is a 1031 exchange in real estate?

AA type of adjustable-rate mortgage
BA tax-deferred exchange of like-kind investment properties under IRS Section 1031✓ Correct
CA government assistance loan program
DA type of title insurance

Explanation

A 1031 exchange allows investors to defer capital gains taxes by exchanging one investment property for another like-kind property. The exchange must meet specific IRS timing requirements (45 days to identify, 180 days to close).

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