saf erf o ryo urlif e .inf o http://www.saferforyourlife.info /time-frames-for-a-1031-exchange/

Time Frames for a 1031 Exchange

Time Frames for a 1031 Exchange

The other important point f or 1031 exchanges is the time f rames f or which they're qualif ied. There are 2signif icant periods that any person who would like to perf orm a 1031 exchange must be aware of : theidentif ication period and the exchange period, and really seriously, both of these time f rames run at thesame time. The Identif ication Period marks when the person selling the property must identif y theirreplacement property, and some purchasers may choose more than one. The Identif ication Period lasts f orprecisely Forty f ive days af ter the relinquished property has been sold. This 45 day timef rame is set and maynot be extended, whether or not the last day f alls during the weekend or on a public holiday.

The IRS says that up to three replacement properties might be selected so long as your last choice includesone of the three. The period lasts f or 180 days af ter the sale of the original property or t ill the due date f orthe person's tax return f or the year the property was bought in, whichever cut of f point comes f irst. Thegain bought f rom one property can be rolled over steadily, and you'll only need to pay tax once your propertyis sold f or money. When this ult imately happens, you will be charged capital gains tax.