Finance
Vermont's '1031 exchange' (like-kind exchange) allows real estate investors to:
AExchange personal property for real estate
BDefer capital gains taxes by exchanging one investment property for another like-kind property✓ Correct
CTransfer their mortgage to another property
DAvoid Vermont Property Transfer Tax
Explanation
A 1031 exchange (named for IRC Section 1031) allows investors to defer federal (and potentially Vermont) capital gains taxes by exchanging one investment property for another like-kind investment property, following strict IRS rules on timing and identification.
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