We get a lot of questions from clients about their 1031 exchanges. Recently, we had a client ask if they could make changes to their identified replacement property after their identification period had ended. That’s the topic we’ll be diving into in this article.
Identification Period
As we’ve discussed before, you have two important timelines to remember in a 1031 exchange. The first is the overall 180 day time period for your exchange. You must complete your exchange no later than 180 days after it begins. The second essential time period is the 45 day identification period. This is the first 45 days of your total 180 day exchange period. Within these 45 days you need to identify in writing the replacement property or properties that you intend to exchange into. That sounds pretty simple, but what if you want to make an amendment to your identification after day 45? Can you do that?
Unfortunately, no. The 45 day identification period is very strict. You are not allowed to make any changes to your replacement property identification after day 45 of your identification period. For that reason, it’s important to make sure you have all of your bases covered in advance of your deadlines.
Qualified Intermediaries in the Twin Cities
Consider a 1031 exchange if you want to defer capital gains taxes on the sale of your real estate. At CPEC1031, LLC, our intermediaries have two decades of experience working on 1031 exchanges with clients in Minnesota and around the country. We can help you with all the aspects of your 1031 exchange – advising you and preparing all the necessary documents along the way. Realize the tax-saving benefits of a 1031 exchange today by setting up a time to chat with one of our intermediaries at our downtown Minneapolis office.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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