Important Information for Investors Beginning a 1031 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 |