Important Information For Investors Beginning An Exchange
From October 17 – December 31, 2015
Do Not File Your 2015 Income Tax Return
Until Your Exchange Has Been Fully Completed
The time frame a taxpayer 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. (U.S. Treasury Regulations Section 1.1031(k)-1(b)(2)). Even though a taxpayer may be entitled to a filing extension, to extend the 180-day period the taxpayer must obtain the filing extension. Consequently, some taxpayers closing on the sale of relinquished property late in 2015 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 2015 tax return (generally April 15, 2016, for individuals), a taxpayer must file an Application for Extension of Time (IRS Form 4868) with the IRS to extend the filing date. If a taxpayer 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.
If your exchange is not completed by the due date
of your tax return — file an extension.
If you have any questions, please call your
Exchange Counselor at Asset Preservation at
National Headquarters (800) 282-1031
or Eastern Regional Office (866) 394-1031.
Another Top-10 List – Best Markets for Housing Investors
Not only does a great investment produce an attractive rate of return, it also increases in value over time based on demand outstripping supply. That increase in value is categorized as capital gains, and for most individuals, is taxed at a lower rate at the time of sale. Read More…
Rise in Commercial Property Prices Moderated in July
Increases in commercial real estate prices moderated in July from earlier this year, particularly in the high end of the market, according to the CoStar Commercial Repeat Sale Indices. Prices were up 12.2% from a year earlier, however, and trading remains brisk, with average days on the market down 9.9% for the 12 months ending in July. Read More…
2-Hour Advanced 1031 Exchange Webinar For Commercial Brokers
New! 1031 Tax-Deferred Exchange Course
CCIM’s advanced course provides a concise and thorough overview of IRC Section 1031 exchanges.
Presenter: Scott Saunders, Asset Preservation, Inc.
Date: Thursday, November 5, 2015
Time: 2:00 p.m. – 4:00 p.m. (CST)
Sign Up Now, Space is Limited
Register Now: CCIM.com/education/course/TDEX/TDEX02
Last Month’s eNews: Trusts and 1031 Exchanges Overview
Trusts are often involved in Internal Revenue Code (“IRC”) Section 1031 exchanges. For example, the relinquished property may be held in a revocable living trust that was formed for estate planning purposes. Or the replacement property may consist of an interest in a Delaware statutory trust or an Illinois land trust. All of these trusts, though serving different purposes, have certain common characteristics, and follow certain rules. Understanding these characteristics and rules can help overcome the challenges presented by trusts. Read more…
1031 Exchanges Under Attack! Help Support the Real Estate Industry Now
Asset Preservation’s 25th Anniversary!
"It is with great pleasure (and a bit of shock) that I announce API’s 25th anniversary! In 1990, three of us started API as a subsidiary of Placer Title Company in Northern California. This was when there was very little 1031 activity compared to the activity we see now. In our desire to grow nationally, and to provide greater security for client exchange funds, we successfully sold the company to Stewart Title Company in 1993.
This is where the memory gets blurry. I spent approximately 12 years traveling the country. I attended countless Stewart conferences, meeting the incredible Stewart family of associates, from coast to coast. Many of those friendships continue to this day. I gave more presentations, classes and lectures on 1031 exchanges than I can remember, while meeting outstanding people with whom I still have the pleasure of working. Expanding API nationally also allowed me to see much of our beautiful country, an opportunity I most likely would not have had otherwise. It was the work of the young, and I highly doubt that I could repeat that performance today…"
To read the message in its entirety, Read Message from API’s Co-founder and President.
Happy 25th Anniversary API!