Let’s say you’re doing a 1031 exchange and you’ve sold your relinquished property and you’re money is with the intermediary. Now you’re scrambling like a chicken with its head cut off trying to identify replacement properties that you can designate on the replacement property identification form. That form has to be transmitted to the intermediary after you’ve clearly and unambiguously described the properties, signed the identification form, and sent it into the intermediary. What happens on day 46 if your dream property pops up and you did not identify it during the 45 day identification period? It’s not on your replacement property list so it’s not eligible for 1031 treatment. So your dream property that becomes available after your identification period is not a property you can use your exchange funds for. Even if you did, it wouldn’t be considered like-kind property because it wasn’t designated properly with the time deadlines.
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.
© 2023 Copyright Jeffrey R. Peterson All Rights Reserved