Finance
A Wyoming 1031 exchange (like-kind exchange) allows an investor to:
AExchange one property for another without any tax implications ever
BDefer capital gains tax by reinvesting proceeds from a sale into a like-kind replacement property✓ Correct
CExchange a residential property for a commercial property with no restrictions
DAvoid all real estate taxes by exchanging properties annually
Explanation
A Section 1031 like-kind exchange allows investors to defer (not eliminate) capital gains tax by reinvesting the proceeds from a sale into a like-kind investment property. Strict rules govern identification periods (45 days) and closing deadlines (180 days), and the properties must be held for investment or business use.
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