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QUIZ: 1031 Exchanges

 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.

1.In order for properties to qualify for a "like-kind" exchange, they must be:

2.To defer capital gains taxes, the replacement property you choose must:

3.How many days from the closing date of your property's sale do you have to identify a replacement property?

4.How many days from the closing date of your property's sale do you have to actually purchase a replacement property?

5.Which of the following purchases would qualify for a 1031 exchange?

6.Which of the following purchases would not qualify as a like-kind exchange?

7.Which of the following is not a rule that must be followed when identifying a replacement property or properties?

8.What is the most common type of 1031 exchange?

9.In a 1031 exchange, the term "boot" usually refers to:

10.To conduct a like-kind exchange, you must use a "Qualified Intermediary" to facilitate the transaction. This person can be: