A client recently came to us with the following 1031 situation: The client was putting in a purchase agreement on a rental property with a contingency for a 1031 exchange. The selling property closes on February 21. 2020. So this offer for an "identification" property will occur before the 45-day ID period. Would this mess up the ID period? Should the client include all of this information on the purchase agreement?
45 Day Identification Period
In a 1031 exchange, you are allowed to close on replacement property within the 45-day ID period. Anything that you close on within the 45-day identification period is “deemed” identified by the IRS; so you may not need to make a separate written identification/designation if you do in fact acquire it (through your qualified intermediary) within the 45-day identification period.
As your qualified intermediary, we will have some forms and documents for both the relinquished property and replacement property closings to connect the two transactions together as a 1031 exchange.
Get Help with Your 1031 Exchange
Get the help you need with your 1031 exchange today by contacting CPEC1031. Our team of qualified intermediaries are ready and waiting to help you through all the stages of the 1031 process. We have over twenty years of experience facilitating 1031 exchanges and can put that experience to work on your next exchange. Contact us today to learn more about how we facilitate exchanges. You can find us at our downtown Minneapolis offices, or at one of our satellite offices around the United States.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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