Important Information for Investors Beginning an Exchange

From October 17 – December 31, 2018

Do Not File Your 2018 Income Tax Return Until Your Exchange Has Been Fully Completed.

The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of the 180th day after the date you transferred the relinquished property OR 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 the 180th day following the closing of your first relinquished property falls after the due date for your 2018 tax return (this year, for individuals, April 17, 2019) you must file an application for extension of time with the IRS to extend the due date. 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.

Remember:
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

National Headquarters: 800.282.1031
Eastern Regional Office: 866.394.1031

Join our one-hour 1031 exchange webinar for tax and legal advisors (CPE credit available) on Tuesday, November 13th at 11:00 a.m. EST. This webinar tackles issues such as reverse and improvement exchanges, related party issues and how to avoid common pitfalls. You will receive a summary of current developments regarding possible tax reform and the implications on 1031 exchanges. Webinar Details.

Top US Destinations Where Young Adults are Moving

Millennials make up approximately 20 percent of the U.S. population – and where they are moving now will impact local economies and housing markets in the future...

1031 Tools: 45/180 Day Calculator

From the closing on the sale of the relinquished property, an exchanger must: (1) properly identify potential replacement properties within 45 calendar days (the “Identification Period”) and; (2) close on the replacement property(ies) within 180 calendar days of the transfer of relinquished property sale (the “Exchange Period”). To access a calculator and determine your 45-day Identification Period and 180-day Exchange Period, click here…

Right before 10-31 day, Asset Preservation's National Headquarters moved into a much larger office space to help accommodate addition exchange counselors and other support staff and maintain Asset Preservation’s commitment to exceptional service nationwide. Effective October 29, 2018, the new address for the National Headquarters is 1420 Rocky Ridge Drive, Suite 380, Roseville, CA 95661.

All other phone numbers and other information will remain the same.

Improving Relinquished Property Before a Sale

It is common for a taxpayer to make repairs, updates, and improvements to enhance a relinquished property in preparation for listing with a real estate agent or broker. A commonly asked question is, “Can I be reimbursed from the 1031 exchange for the costs associated with improving or repairing the property immediately before the sale?” The answer is no, not without generating a tax consequence. The reason for this is that any exchange proceeds a taxpayer receives from a 1031 exchange are considered “boot” and are generally taxable to the extent the taxpayer has a capital gain tax consequence.

Open a 1031 Exchange   |    Find a 1031 Expert    |    800-282-1031    |    Ask a Question