1031 Rule Could Shorten Your 180 Days!
October 20th, 2008 categories: For Sellers
Julie Tumbaga, Vice President in Honolulu of OREXCO 1031 Exchange Company (808-524-6737), sent me an email clarifying a rule that could have a significant impact on your IRC Section 1031 Tax Deferred Exchange that closes toward the end of 2008. Julie said…
“This is a reminder that under the Treasury Regulations governing Section 1031 exchanges, the exchange period commences on the date the taxpayer transfers the relinquished property to the buyer and ends at midnight on the earlier of the 180th day thereafter or the due date (including extensions) for the taxpayer’s return. Treas.Reg. Section 1.1031(k)-1(b)(2)(ii).
Consequently, if you transfer relinquished property on or after October 18, 2008 through December 31, 2008, you will have less than the full 180 days to complete the exchange unless you file for an extension on your tax return which is due on April 15, 2009.”
If you would like to discuss a 1031 Exchange, please call me at 808-737-2093 (toll free 877-737-2093)
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Great Post.
One disturbing trend that people should also be aware of in 1031 exchanges is abuse and mismanagement of money by exchange companies. I encourage everyone to thoroughly vet any potential qualified intermediary.
Consider working with a 1031 exchange company that deposits your money only in money-market accounts that invest in government backed securities. With uncertain market conditions, it’s the only way to ensure your money will be there when you need it. I only know of one such company, RockSolid 1031. You can check out their website at http://www.RockSolid1031.com.