30

Question 30 (1 point) Doug Doolittle, a landlord, wishes to receive 1031 treatment on an exchange of an apartment building. Doug transfers the real property with a basis of $300,000 and a value of $450,000 to a qualified financial intermediary on 3/15/2019. Which of the following describes the correct procedure to receive like-kind treatment for any qualifying property received in the exchange? Doug must take possession of the qualified replacement property within two years after the close of the tax year of exchange. If the intermediary sells Doug's property and Doug identifies qualified replacement property within the allowable time period, Doug may request the intermediary to distribute the sales proceeds to him and Doug may purchase replacement property on his own. Doug must identify and take possession of qualified replacement property within three years of the date of the transfer of the property to the intermediary. Doug must identify replacement property (or properties) within 45 days of transferring his property and must take possession of the replacement property within 180 days of the exchange