With a better understanding of Section 1031 of the Internal Revenue Code, you can help clients hang on to their wealth and defer capital-gains taxes by reinvesting proceeds from the sale of a business or investment property. In the meantime, you may even open the door to a new niche. This quiz, developed with the help of experts at Miami-based Bayview Financial Exchange Services, will help you get started.
In order for properties to qualify for a "like-kind" exchange, they must be:
To defer capital gains taxes, the replacement property you choose must:
How many days from the closing date of your property's sale do you have to identify a replacement property?
How many days from the closing date of your property's sale do you have to actually purchase a replacement property?
Which of the following purchases would qualify for a 1031 exchange?
Which of the following purchases would not qualify as a like-kind exchange?
Which of the following is not a rule that must be followed when identifying a replacement property or properties?
What is the most common type of 1031 exchange?
In a 1031 exchange, the term "boot" usually refers to:
To conduct a like-kind exchange, you must use a "Qualified Intermediary" to facilitate the transaction. This person can be: