180 Day 1031 Exchange Deadline When Exchange Straddles Two Tax Years

If you have ever gone through a 1031 exchange transaction before, you know that you have 180 calendar days to complete your 1031 exchange by acquiring (closing) all of your like-kind replacement property(ies) no later than the 180th calendar day from the date that your relinquished property sale closed.

However, the rule is actually the earlier of 180 calendar days OR the due date of the Investor's Federal income tax return, including extensions.

For example, if your relinquished property sold and closed on December 1 of any given tax year the 180th calendar day would fall after April 15, which is the due date for most individuals' Federal income tax returns. The Investor's deadline to complete his 1031 exchange would be April 15th.

There is an easy way around this little issue, and that is filing an extension of time to file the Federal and state income tax returns, then complete the 1031 exchange, and then file the actual income tax returns.

It's not a really big issue, unless you forget to file the extension, and then it can ruin your whole year! You can learn more about your 1031 exchange deadlines here: http://www.exeterco.com/1031_exchange_deadlines.aspx