Section 1031 can allow nonrecognition of some or all gain when qualifying real property held for business or investment is exchanged for like kind real property and the applicable requirements are met. Eligibility and tax treatment depend on the investor's specific facts.
The standard federal timeline
- Transfer date: the exchange period begins when the relinquished property is transferred.
- Within 45 days: identify replacement property in the manner required by the federal rules.
- Receipt deadline: receive the replacement property by the earlier of 180 days after the transfer or the due date of the applicable tax return, including extensions.
Where Alex fits
TDG can assist with the real estate search and transaction timeline. The investor's qualified intermediary, CPA, and attorney determine the exchange structure, documentation, and tax treatment. Starting the replacement criteria before the sale can reduce avoidable time pressure, but no property, closing, or tax result is guaranteed.
Federal timing summary based on the IRS Instructions for Form 8824. Special rules and official disaster relief may apply. Alex is a licensed real estate broker, not a tax advisor. Confirm your strategy with your qualified intermediary, CPA, and attorney. Read the current IRS instructions.