💰 CPA Exam Prep

Section 1031 like-kind exchanges allow:

A Tax-free exchange of any property
B Deferral of gain on exchange of qualifying real property held for business or investment
C Immediate tax deduction
D Exchanges of personal property

✓ Correct Answer: Option B

§1031: defer gain recognition on exchanges of like-kind real property used in trade/business or held for investment. Personal property no longer qualifies after TCJA.

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