Wishing You Happy Holidays
Message from the President
As we usher in the new year, and the new opportunities that it may present, we want to take a moment to express our sincere gratitude for your continued support of API. Serving you has been a true pleasure, and we deeply appreciate the trust and collaboration you’ve extended to us over the past year. Reflecting on the achievements of the past year, we are filled with thanks for the strong relationships we’ve built and the milestones we’ve reached together. Your support has been pivotal to our success, and we’re excited for the opportunities and growth that 2025 holds.
Wishing you a joyful holiday season and a bright start to the new year!
Javier G. Vande Steeg
President
Do You Have a Property Closing in December?
Many investors and their advisors have real estate transactions closing near the end of December. If you or your client have an investment property transaction closing before the end of 2024 – and you have not already set up a 1031 exchange – keep in mind Asset Preservation is available to set up your exchange at the last minute! We can often set up a new 1031 exchange, converting an otherwise taxable sale into a tax-deferred transaction, within an hour. A properly structured exchange provides an investor with up to 45 calendar days to potentially find suitable replacement property. For more information, please call us at 800-282-1031 or via email at info@apiexchange.com.
Important Information for Investors Beginning an Exchange
If your 1031 exchange is not complete by the due date for your tax return, you may need to file for an extension.
The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of: (a) the 180th day after the date you transferred the relinquished property; OR (b) the due date (including extensions) for your income tax return for the taxable year in which the transfer of the relinquished property occurs. (U.S. Treasury Regulations section 1.1031(k)-1(b)(2)).
This means, if your relinquished property sale closes after October 17, 2024, your 180th day deadline to acquire replacement property will fall after the common 2024 tax return due date of April 15, 2025. In order to receive the full 180-day period to acquire replacement property, you must file an application for extension of time with the IRS to extend the due date for your 2024 tax return. If you do not file for an extension, you will NOT be able to acquire any replacement property in your exchange after your tax return due date. Taxpayers may have different tax return due dates. Please consult with your tax advisor to determine your tax return due date, and whether you will need to file for an extension.
If you have any questions, please contact your tax advisor.
National Headquarters: 800-282-1031
Eastern Regional Office: 866-394-1031
1031 Exchange Webinar
Tuesday, January 7th
3:00 PM – 4:00 PM PST
CPE Available
This one-hour intermediate/advanced webinar covers critical time deadlines, like-kind requirements, fractional ownership, oil/gas/mineral rights, related party transactions, partnership/LLC scenarios, reverse and improvement exchanges, and how to avoid common pitfalls.
We Love Our Happy Customers
Great experience. We knew nothing about the 1031 process, and API guided us each step of the way. They were also very responsive and took the time to explain everything! Thanks, Cassandra!
You did a great job again!
– Mike B.
2024 Year-End Tax Planning
Exchanges Over Two Tax Years May Be Treated As An Installment Sale
In a delayed exchange transaction structured to satisfy the requirements of §1031, an exchanger has up to 180 calendar days to acquire like-kind replacement property measured from the day the relinquished property is sold. Once initiated, the delayed exchange may be successfully completed (resulting in complete tax deferral), partially completed (resulting in recognition of some capital gain) or it may fail if no like-kind replacement property is acquired (resulting in the recognition of all capital gain generated by the sale). If the exchange begins in one tax year and extends into the subsequent tax year, the question arises whether the gain realized on the sale is recognized in the year in which the relinquished property was sold or in the subsequent year in which the exchanger received the cash sale proceeds from the qualified intermediary.
In a perfect world, gain would be recognized in the subsequent year when the proceeds were actually received by the exchanger. In many cases, this turns out to be wholly or partially true.
Federally Declared Disaster Extension Information
Click the link below to determine if you may qualify for an extension.
https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
Additional information here: https://apiexchange.com/disaster-relief/
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