How Long After the Initial Exchange Does a Taxpayer Have

question 73

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 180 days.
• B) There is no deadline for the identification of replacement property.
• C) 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.
• D) The like-kind property to be received must be identified within 45 days.
• E) All of the choices are correct.

---

Definitions:

Deduction

An expense that can be subtracted from an individual's taxable income, reducing the amount of income subject to tax.

Nonprescription Drugs

Medications that can be bought without a doctor's prescription, also known as over-the-counter drugs.

Aspirin

A medication used to reduce pain, fever, inflammation, and is also used in low doses to prevent blood clots.

Deductible

Eligible expenses that can be subtracted from gross income to reduce taxable income.