Counting correct 1031 Exchange timelines is critical to successful transactions.
Today we discuss the issue of when the 45-day (for Identifying) and 180-day (last day to close on the purchase of replacement property) timelines in a Section 1031 exchange begin.
So far this year, our office has had four clients who have had their property taken by a governmental agency through eminent domain proceedings. So, let’s briefly discuss some of the questions they should have asked and the information their financial and/or legal advisors hopefully gave them.
FACTS: The Exchanger, who lives in Idaho, has closed on its Nevada Relinquished Property ( an investment rental home valued at $350,000) on August 1, 2017
FACTS–A very bright client of ours purchased two different properties a number of years ago. These two properties were in a developing area of Miami-Dade County.
The case law on this type of 1031 Exchange transaction shows that the IRS may consider the exchanger to be a “Dealer” rather than an investor which will disqualify the transaction as a 1031 exchange relinquished property sale. The case law varies in outcomes, but generally, this is not a safe way to proceed.
The Exchanger has only 45 days from the day of closing on its relinquished property to identify possible replacement property. WARNING: Section 1031 and the IRS regulations thereunder have strict requirements for the identification of replacement property.
Counting correct 1031 Exchange timelines is critical to successful transactions.
Today we discuss the issue of when the 45-day (for Identifying) and 180-day (last day to close on the purchase of replacement property) timelines in a Section 1031 exchange begin.
So far this year, our office has had four clients who have had their property taken by a governmental agency through eminent domain proceedings. So, let’s briefly discuss some of the questions they should have asked and the information their financial and/or legal advisors hopefully gave them.
FACTS: The Exchanger, who lives in Idaho, has closed on its Nevada Relinquished Property ( an investment rental home valued at $350,000) on August 1, 2017
FACTS–A very bright client of ours purchased two different properties a number of years ago. These two properties were in a developing area of Miami-Dade County.
The case law on this type of 1031 Exchange transaction shows that the IRS may consider the exchanger to be a “Dealer” rather than an investor which will disqualify the transaction as a 1031 exchange relinquished property sale. The case law varies in outcomes, but generally, this is not a safe way to proceed.
The Exchanger has only 45 days from the day of closing on its relinquished property to identify possible replacement property. WARNING: Section 1031 and the IRS regulations thereunder have strict requirements for the identification of replacement property.
Counting correct 1031 Exchange timelines is critical to successful transactions.
Today we discuss the issue of when the 45-day (for Identifying) and 180-day (last day to close on the purchase of replacement property) timelines in a Section 1031 exchange begin.
So far this year, our office has had four clients who have had their property taken by a governmental agency through eminent domain proceedings. So, let’s briefly discuss some of the questions they should have asked and the information their financial and/or legal advisors hopefully gave them.
FACTS: The Exchanger, who lives in Idaho, has closed on its Nevada Relinquished Property ( an investment rental home valued at $350,000) on August 1, 2017
FACTS–A very bright client of ours purchased two different properties a number of years ago. These two properties were in a developing area of Miami-Dade County.
The case law on this type of 1031 Exchange transaction shows that the IRS may consider the exchanger to be a “Dealer” rather than an investor which will disqualify the transaction as a 1031 exchange relinquished property sale. The case law varies in outcomes, but generally, this is not a safe way to proceed.
The Exchanger has only 45 days from the day of closing on its relinquished property to identify possible replacement property. WARNING: Section 1031 and the IRS regulations thereunder have strict requirements for the identification of replacement property.
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