How Long After the Initial Exchange Does a Taxpayer Have

question 30

Multiple Choice

How long after the initial exchange does a taxpayer have to identify replacement property in a like-kind exchange?

• A)The like-kind property to be received must be identified within 45 days.
• B)The like-kind property to be received must be identified by the earlier of 45 days or the last day of the taxpayer's taxable year.
• C)The like-kind property to be received must be identified within 180 days.
• D)There is no deadline for the identification of replacement property.
• E)All of the choices are correct.

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Definitions:

Annual Payments

Regular payments made once a year, often used in the context of loans, insurance, or annuities.

Compounded Quarterly

A method of calculating interest where the interest is added to the principal amount after every quarter, leading to interest earning interest in subsequent periods.

Future Value

Future value is the value of a current asset or amount of money at a specified future date, based on an expected rate of growth or return.

Annually Deposits

Regularly scheduled payments made into an account or investment every year.