What Is the Primary Purpose of a Third-Party Intermediary in a Deferred

question 59

Multiple Choice

What is the primary purpose of a third-party intermediary in a deferred like-kind exchange?

• A) To facilitate finding replacement property.
• B) To help acquire the replacement property.
• C) To prevent the seller from receiving cash (boot) that will taint the transaction.
• D) To certify the taxpayer's Form 8824.
• E) All of the choices are correct.

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Definitions:

Absolute Promise

A commitment or guarantee that is unconditional and without any limitations or qualifications.

Breach

A violation or infringement of a law, obligation, tie, or standard.

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Required Duties

Obligations or tasks that an individual or entity must perform as mandated by law or contract.