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Calculating 1031 Exchange Deadlines
When participating in a 1031 tax exchange it is important to follow all of the IRS rules, to the letter, governing the exchange. This includes the strict deadlines that the government imposes on a 1031 exchange.
There are two exchange deadlines that the taxpayer must be aware of.
First, is the 45-day period allowed for identifying a replacement property once you have closed on the relinquished property. Second, is the 180-day period required to close on the replacement property.
A good way to avoid many of the deadlines associated with a 1031 exchange is to meet the requirements of a reverse exchange. In a reverse exchange, the replacement property is purchased first.
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What is the Boot Test?