by Douglas J Anderson, Window Shopper
- Created: May 20, 2013, 3:18 pm
Background: A Taxpayer can defer the capital gains tax liability from the sale of real estate if they subsequently use the sale proceeds to purchase new real estate of equal of greater value. 1) The Taxpayer has 45 calendar days from the time he/she sells the relinquished property to identify his/her intended replacement property(ies). Failure to identify replacement property(ies) within 45 calendar days will result in the 1031 exchange transaction being disallowed and reconstituted as a taxable sale. 2) The Taxpayer must complete his/her 1031 exchange transaction by the earlier of: a) 180 calendar days from the sale of all the relinquished property b) Due date of the Exchangor's Federal income tax return for the tax year in which the relinquished property was sold, including filing extensions. Note: The Taxpayer is unable to extend deadlines under any circumstances 3) Title to the exchange property must be vested exactly the same as the relinquished property. This is only a snap-shot of the complexities involved in these types of transactions. As such, this article is not intended to replace the advice of a CPA.
- Community Home
- Discussion Boards
- Tell Us...
- Discuss Popular Topics
- Developer Resources
- Social Media