Finance

An Oregon investor purchasing a commercial property uses a 1031 exchange to defer capital gains tax. For the exchange to be valid, the investor must:

APurchase an identical type of property within 30 days
BIdentify replacement property within 45 days and close on it within 180 days✓ Correct
CUse a licensed Oregon real estate broker as the qualified intermediary
DPurchase a property of equal or lesser value

Explanation

A valid 1031 exchange requires the taxpayer to identify replacement property within 45 days of the relinquished property sale and close on the replacement property within 180 days. The exchange must be handled through a qualified intermediary (QI), not a real estate broker.

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