For a transaction to qualify as a third-party exchange,
I.The exchange must be completed within 1 year of the first exchange.
II.The property exchanged must be identified within 45 days of the first exchange.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

For a transaction to qualify as a third-party exchange,
I.The exchange must be completed within 1 year of the first exchange.
II.The property exchanged must be identified within 45 days of the first exchange.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

The correct statement regarding a third-party exchange, often referred to in the context of a 1031 exchange in the United States tax code, is that the property to be exchanged must be identified within 45 days of the first exchange. The requirement to complete the exchange within 1 year is not accurate; instead, the exchange must generally be completed within 180 days.

For a Transaction to Qualify as a Third-Party Exchange