Important information for investors beginning a 1031 exchange from October 18 – December 31, 2013
The time frame an exchanger has to complete the acquisition of a replacement property in a 1031 exchange ends at midnight on the earlier of the 180th day after the date the relinquished property was transferred – or – the due date (including extensions) for the income tax return for the taxable year in which the transfer of the relinquished property occurs. Section 1031(a)(3)(B). Even though an exchanger may be entitled to a filing extension, to extend the 180-day period the exchanger must actually obtain the filing extension. Consequently, some exchangers closing on the sale of relinquished property late in 2013 may need to file for an extension to utilize the entire 180 -day exchange period. As a general rule, exchangers should not file a tax return until the 1031 exchange is complete.
More specifically, if the 180th day following the closing of the sale of the first relinquished property falls after the due date for filing the 2013 tax return (generally April 15, 2014 for individuals), an exchanger must file IRS Form 4868 with the IRS to actually extend the filing date. If an exchanger does not file for such an extension, they will not be able to acquire any replacement property in an exchange after the tax return due date.
1031 Basics: The Delayed Exchange
Case-Shiller Posts Best Year-Over-Year Gain Since 2006
United States home prices, including single-family houses as well as apartments, posted the best year-over-year gain since 2006, according to data from S&P Dow Jones Indices. The S&P/Case-Shiller Home Price Indices for July, showed Year-Over-Year gains of 12.3% and 12.4%, respectively, as measured by the 10- and 20-City Composites. Read More…
Home Sales, Prices On the Rise
Sales volume and median prices for U.S. homes is continuing to increase in most markets, and short sales and bank-owned sales combined account for one in four sales, according to RealtyTrac. US residential properties, including single-family homes, condominiums and townhomes, sold at an estimated annualized pace of 5.6 million in August, up 2% from the 5.5 million pace in July and up 12% from the 5 million pace in August 2012. Read More…
1031 Exchange Resources