Question
Why does a §1031 exchange defer gain instead of eliminating it?
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Answer
The old basis carries into the replacement property as substituted basis.
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Question
What are the timing deadlines for a deferred §1031 exchange?
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Answer
Identify within 45 days and receive within 180 days.
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Question
Why is depreciation recapture taxed immediately in an installment sale?
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Answer
It is recognized in full in the year of sale.
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Question
What happens to interest on an installment note?
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Answer
It is taxed separately as ordinary income.
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