Finance

An Oklahoma buyer wants to use a 1031 exchange to defer capital gains taxes when selling an investment property. To qualify, the replacement property must be:

AIn Oklahoma only
BOf like-kind (real property for real property), and strict IRS timelines for identification and closing must be met✓ Correct
CMore expensive than the relinquished property always
DA new construction property only

Explanation

Under IRS Section 1031, the replacement property must be of like-kind (real property exchanged for real property) and the taxpayer must identify the replacement within 45 days and close within 180 days of selling the relinquished property.

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