What is the IDENTIFICATION PERIOD timeline?

What is the IDENTIFICATION PERIOD timeline?

In a 1031 EXCHANGE, you have a 45-day identification period and a 180-day exchange period.

IDENTIFICATION RULES

A taxpayer has 45 days from the time the property is sold to identify possible replacement properties. A written notice of this identification must be signed and delivered to the seller or qualified agent of the desired property. For real estate, the documentation must include specific details about the property such as the address and legal description.

Next, the replacement property must be secured, and the exchange finalized no later than 180 days after the sale of the original asset or the deadline of the income tax return for the tax year the original asset was sold—whichever comes first. The property must be of very similar description to the one mentioned during the initial 45-day time frame.

by Robert W. Wood - Investopedia

Contact a 1031 Exchange specialist for details:
Dino Champagne - 1031 Exchange Specialist with Asset Preservation, Inc. (API)
https://apiexchange.com/1031-exchange-los-angeles

FREE WEBINAR: How To Take Advantage of Section 1031
https://www.jasonhartman.com/1031

Submitted by: Team Member Carrie

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