Question \#12 of 15 Like-kind exchanges need to be simultaneous to be tax deferred. True False

False! While it's a common misconception that like-kind exchanges must be simultaneous, they actually don't have to occur at the same time. You can do a deferred exchange, where you sell your property and then acquire a new one within a specific time frame—typically 45 days to identify a replacement and 180 days to complete the purchase. This flexibility allows investors to strategize their exchanges more effectively. In the world of real estate investing, like-kind exchanges, officially known as 1031 exchanges, offer a powerful tax-deferral strategy. They allow investors to trade one investment property for another without incurring immediate tax liability, creating opportunities for portfolio growth. Just remember, all properties involved must be of a "like-kind," meaning they must be held for investment or business purposes. Happy exchanging!