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The Potentially Large Amount of Taxes Due on Sale of Commercial

question 1

Multiple Choice

The potentially large amount of taxes due on sale of commercial property has caused investors and policy makers to seek ways to defer taxes on the disposition of a property. A popular option has become for investors to swap one eligible property for another in order to avoid or defer capital gains taxes. Which of the following methods for deferring taxes does this describe?


Definitions:

Stock Market

A marketplace where stocks (shares of ownership in companies) are bought and sold, typically through exchanges.

Risk-Free Rate of Return

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Hyperpolarization

Increase in the charge difference across the plasma membrane; causes the charge difference to move away from 0 mV.

Hypopolarization

Change in the electric charge difference across the plasma membrane that causes the charge difference to be smaller or move closer to 0 mV.

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