Which one of the following is NOT a requirement of a deferred like-kind exchange?
A) The like-kind property to be received must be identified within 45 days.
B) The exchange must be completed within the taxable year.
C) The like-kind property must be received within 180 days.
D) The exchanged property must be like-kind.
E) All of the choices are correct.

Question

Quizplus · Accepted Answer

The requirement that the exchange must be completed within the taxable year is not correct. In fact, a deferred like-kind exchange can take up to 180 days to complete. The other requirements listed are correct: (A) the like-kind property to be received must be identified within 45 days, (C) the like-kind property must be received within 180 days, and (D) the exchanged property must be like-kind. Therefore, the answer is B.

Which One of the Following Is NOT a Requirement of a Deferred