If Your Exchange Is Not Complete – File An Extension
In the world of 1031 Exchanges, timelines can often pose the biggest challenges. Understanding these timelines is crucial to ensuring the success of your Exchange transactions.
According to Section 1031, here’s the breakdown: You have 45 days from settlement to identify your desired acquisitions, and a total of 180 days from that settlement date to complete the Exchange. However, it’s essential to note that it’s not just 45 and 180; it’s 45 within a total of 180 days.
And here’s where it gets even more critical: it’s 180 days or the due date of your tax return!
Let’s consider the scenario of the diligent filer. While it may seem like a commendable habit, it could inadvertently put your Exchange at risk. Filing your tax return before completing the Exchange can prematurely terminate your Transaction.
So here’s the golden rule: If you find yourself in an Exchange late in the tax year, ensure completion before filing your return. And if you’re approaching the April 15th deadline, it’s wise to file an extension.
As we navigate Tax Day and the complexities of 1031 Exchanges, rest assured that our team is here to guide you every step of the way.
The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 503-635-1031.
