Property Valuation

A Utah 1031 exchange allows an investor to defer capital gains taxes by:

ASelling investment property and keeping the proceeds in a bank account for 180 days
BReinvesting sale proceeds into like-kind replacement property following IRS rules✓ Correct
CDonating the property to a Utah charity
DTransferring the property to an LLC

Explanation

Section 1031 of the Internal Revenue Code allows investors to defer capital gains taxes when they exchange investment property for like-kind replacement property, using a qualified intermediary and meeting timing requirements.

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