Questions and Answers


4. What are the general guidelines to follow in order for a taxpayer to completely defer all the taxable gain?


  1. The value of the replacement property must be equal to or greater than the
    value of the relinquished property.
  2. The equity in the replacement property must be equal to or greater than the equity in the relinquished property.
  3. All of the net proceeds from the sale of the relinquished property must be
    used to acquire the replacement property.