1031
Replacement property, on a clock.
The desk can look for a net-lease replacement. It does not hold exchange funds, and it does not tell you the tax you deferred. That number belongs to your CPA.
- Like-kind
- Real property in the United States, held for investment or business. A primary residence and dealer property do not qualify.
- 45 days
- Identify the replacement from the day you close the sale. A missed date ends the deferral. There is no cure.
- 180 days
- Close the replacement within 180 days of the sale, and not later than the tax-return due date including extensions.
- How many
- Three properties, or 200% of the value of what you sold, or 95% of the value you identified. Test the list against all three before day 45.
- The intermediary
- A qualified intermediary has to hold the proceeds. If the money comes to you, the exchange fails.
- Boot
- Cash out and debt that is not replaced can be taxable. Deferral is not forgiveness. Your CPA runs that math.
- 1. Count the dates from the sale closing you already have. This page does not start the clock.
- 2. Write that identification deadline on a want. The desk does not invent the date.
- 3. Then read the tape for a fee-simple replacement. The desk does not hold the proceeds.
IRC §1031. Dates are counted on your escrow calendar. Mark them with your intermediary before you shop. This page is not tax advice.