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

**Step 1: Understanding Like-Kind Exchanges** A like-kind exchange under U.S. tax law allows a taxpayer to defer recognition of capital gains when they exchange property held for business or investment purposes with another property of like kind. **Step 2: Simultaneous Requirement** Historically, some might have thought that the exchange had to be simultaneous—meaning that the relinquished property and the replacement property were exchanged at the same time. However, current regulations allow for non-simultaneous exchanges (often referred to as "delayed exchanges"). In these cases, the taxpayer can sell the relinquished property and then identify a replacement property within a set period (typically 45 days) and close on it within an additional period (typically 180 days). **Step 3: Conclusion** Since transactions can be structured in a delayed manner, it is not necessary for the exchange to be simultaneous to qualify for tax deferral. \[ \textbf{Answer: False} \]