The major reason for undertaking an exchange of property, as opposed to an outright sale and subsequent reinvestment, is to defer paying income taxes on the disposition of the old property. Conversely, an investment property that is sold without a tax-deferred exchange can force the seller to pay up to 28% of their gain in taxes! Exchange Types >> Steps in the Exchange Process >>
1031 Exchange Time Limit
IRC section 1031 requires the exchangor to identify their replacement property within 45 days from the close of their sale property. The exchanger has a remaining 135 days to close on their replacement property. These combined dates total 180 days (6 months) These time limits apply to all types of 1031 exchanges.
e-Core Group and e-Core Finical do not provide tax or legal advice. This information is not a substitute for an attorney or other tax professional. In all Section 1031 exchanges, property owners should seek advice from competent legal and tax professionals.