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?

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This describes a like-kind exchange, also known as a 1031 exchange, where an investor swaps one property for another in order to defer taxes on the sale of the first property.

The Potentially Large Amount of Taxes Due on Sale of Commercial