1031 EXCHANGE TAX STRADDLE FOR 2023

If you start a 1031 Exchange after July 5th with one or more replacement properties identified or November 17th without any identification, both of those situations will cause the exchange to span across two tax years per IRS rules. In the case of the 17th, the 45-day identification period would not be up until the following year. And in the case of the 5th, the 180-day exchange period will similarly not be up until the following year. So based upon these dates, even for a failed exchange, due to the “tax straddle”, a taxpayer who had a bona fide intent to do an exchange can get deferral until the tax return for the second year is due, learn more in this article.

Read Full Article Here