Finance

In a Virginia 1031 exchange, an investor can defer capital gains taxes by:

ASelling investment property and buying a primary residence
BExchanging one investment property for another 'like-kind' investment property within specified time limits✓ Correct
CDonating the property to a charity
DRefinancing the property

Explanation

A 1031 (like-kind) exchange allows Virginia real estate investors to defer capital gains taxes by selling an investment property and reinvesting proceeds into another like-kind investment property within 45 days identification and 180 days closing deadlines.

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