delayed exchange

Definition of "delayed exchange"
  1. A method of avoiding capital gains tax by placing funds in a trust for up to 180 days while acquiring a similar property as per Section 1031 of the Internal Revenue Code
How to use "delayed exchange" in a sentence
  1. To avoid capital gains tax on his investment property, he opted for a delayed exchange.
  2. The real estate investor used a delayed exchange to defer her taxes while she located a similar property.
  3. Under Section 1031 of the Internal Revenue Code, they carried out a delayed exchange with the assistance of a binding trust.

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