Many people identify multiple replacement properties, but when it all shakes out they really only end up purchasing one property. What if you purchased that one property and you still have an excess of unused exchange funds remaining in your account?
If you have identified properties still on the chopping block that you could potentially acquire, your exchange period doesn’t end until you either acquire those properties or the exchange period times out.
When does the exchange period time out?
The 1031 exchange period is generally 180 days. However, it’s also shortened to the due date for the filing of your federal income tax return. So if you want your exchange to end, timely file your tax return on April 15 and notify your intermediary that your exchange will be ending on April 15 (the due date for your federal tax filing). That works great if you sold your relinquished property late in the preceding year. This strategy does not work as well if you sell your property later in the year and you’re not able to use the April 15th shortened timeframe.
Your 1031 Exchange Questions, Answered
At CPEC1031, LLC we have been facilitating 1031 exchanges of investment real estate for more than two decades. Our qualified intermediaries have all the answers to your questions about 1031 exchanges. Contact us today to learn more about the 1031 exchange process and see how we can help you through the ins and outs of your next like-kind exchange of real estate under section 1031 of the Internal Revenue Code. You can find us at our downtown Minneapolis offices and set up a time to chat with one of our team members.
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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