IMPORTANT INFORMATION: Investors Beginning An Exchange After October 17, 2022
Do Not File Your 2022 Income Tax Return Until Your Exchange Has Been Fully Completed
1IRC Section 1031, U.S. Treasury Regulations section 1.1031(k)-1(b)(ii), requires that taxpayers acquire all replacement property by the earlier of 180 days from the sale of the relinquished property or the Federal tax return due date for the year in which the exchange commenced. Therefore, taxpayers with exchange transactions beginning on or after October 17th, may have less than 180 days to complete their exchange, unless they file an extension.
If the 180th day following the closing of your first relinquished property falls after the due date for your 2022 tax return (this year, for individuals, April 17, 2023), you must file an application for extension of time with the IRS to extend the due date. If no extension is filed, you will not be able to acquire any replacement property in your exchange after your tax return due date.
Please check with your CPA or tax advisor with regard to filing for an extension of your Federal and State tax returns.
To calculate your 45 and 180 day deadlines please use our Exchange Calculator on our homepage slider. Give us a call if you have any questions!