Finance

A Wyoming commercial real estate investor uses a 1031 exchange to defer capital gains taxes. The exchange requires:

AThe replacement property to be of equal or lesser value
BThe identification of replacement property within 45 days and closing within 180 days✓ Correct
CThe exchange to be completed within 30 days of sale
DBoth properties to be in Wyoming

Explanation

A 1031 tax-deferred exchange requires the investor to identify potential replacement properties within 45 days of selling the relinquished property and close on the replacement property within 180 days. The replacement property must be of like-kind and equal or greater value to defer all gain.

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