What if you’re using the 3-Property rule in your 1031 exchange and you find a better property after the 45 day identification period has come and gone? Unfortunately, your options are quite limited in this scenario.
The IRS is not going to make you identify properties, limit how many you can identify, and then let you break all those rules and allow you to identify something else.
Perhaps the only situation in which the IRS might allow you to identify a different property after your identification period is if there is a federally declared disaster that directly and adversely impacts your property. In that situation, your identification timeline would be extended and you would be able to change your identification. However, this is extremely rare so you need to be careful about meeting your 1031 exchange deadlines.
Keep Your Money Working For You With a 1031 Exchange
Rather than sell your investment property and realize capital gains taxes, keep your money working for you in a continued 1031 exchange investment property and defer those taxes. Section 1031 is a powerful provision that tax-savvy investors have been using for decades. And you can harness that power too! At CPEC1031, LLC we have more than two decades of experience facilitating like-kind exchanges of all types. We can help you through the entire 1031 exchange process and make sure all the details are covered.
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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