Can a taxpayer revoke his or her 1031 exchange property identification at any point during the exchange period? That’s the topic for today’s article.
How to Revoke Identified Property
The short answer is yes (if you are within the first 45 days of the exchange period). During the first 45 days you can identify your replacement properties in writing and you can also revoke your replacement properties.
But the revocation also needs to be in writing and signed by the taxpayer and sent to the intermediary (or other party that you previously identified to) within that 45 day period. After the 45th day has elapsed, it’s too late to revoke, amend, or otherwise change your identification, and you’re locked into whatever you identified during the first 45 days.
Save Taxes with a 1031 Exchange
If you’re looking to save taxes on the sale of real estate, look no further than the 1031 exchange! A like-kind exchange can help you defer taxes and keep your hard-earned money working for you over time. At CPEC1031, our intermediaries have been facilitating exchanges for taxpayers throughout Minnesota and around the country for decades. Give us a call today to learn more about 1031 exchanges, and how you can use them to save money when selling real property.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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