What is the primary purpose of a third-party intermediary in a deferred like-kind exchange?
A) To facilitate finding replacement property.
B) To help acquire the replacement property.
C) To prevent the seller from receiving cash (boot) that will taint the transaction.
D) To certify the taxpayer's Form 8824.
E) All of these.

Question

Quizplus · Accepted Answer

The primary purpose of a third-party intermediary in a deferred like-kind exchange is to hold the proceeds from the sale of the relinquished property to prevent the seller from receiving cash, which would otherwise be taxable.

What Is the Primary Purpose of a Third-Party Intermediary in a Deferred