Finance
A South Dakota investor uses a 1031 exchange. This allows them to:
AExchange one investment property for another without paying capital gains tax at the time of exchange✓ Correct
BExchange residential properties with no restrictions
CExchange their primary residence for an investment property
DAvoid all taxes permanently on real estate profits
Explanation
A 1031 (like-kind) exchange allows investors to defer capital gains taxes by reinvesting proceeds from the sale of an investment property into another like-kind investment property, following IRS rules.
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