Discussion:1031 multiple property exchange and ID period
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| Revision as of 20:12, 2 August 2006 Riley2 (Talk | contribs) (If, as part of t) ← Previous diff |
Current revision MSTguy (Talk | contribs) (What would happe) |
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| {{ForumReplyPost|UserID=Riley2|Date=2 August 2006|Text=If, as part of the same deferred exchange, the taxpayer transfers more than one relinquished property and the relinquished properties are transferred on different dates, the identification period and the exchange period are determined by reference to the earliest date on which any of the properties are transferred. | {{ForumReplyPost|UserID=Riley2|Date=2 August 2006|Text=If, as part of the same deferred exchange, the taxpayer transfers more than one relinquished property and the relinquished properties are transferred on different dates, the identification period and the exchange period are determined by reference to the earliest date on which any of the properties are transferred. | ||
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| + | {{ForumReplyPost|UserID=MSTguy|Date=2 August 2006|Text=What would happen if the identification of replacement property was made after the 45 day period ended for the 1st transfer of relinquished property, but was within 45 days of the transfer of the 2nd and 3rd properties? If the original intent was that it all be the same deferred exchange, does the entire exchange fail? Or could the gain on the 2nd and 3rd properties still be deferred while recognizing the gain on the failed first property exchange? | ||
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| + | My problem is this - the QI for the taxpayer used the closing date of the last property sold as the starting period for the 45 and 180 day periods. But the first property sold was over a month before this date, so it actually failed the 45 day identification, which was made only days before the end of the period with reference to the 3rd property. | ||
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| + | This could turn very messy...}} | ||
Current revision
Discussion Forum Index --> Tax Questions --> 1031 multiple property exchange and ID period
| 2 August 2006 | |
| I'll admit I haven't done a lot of research on this yet, but sometimes asking here provides quicker answers.
Facts: Taxpayer relinquishes 3 separate properties in exchange for a single property in a 1031 exchange. The 3 relinquished properties are transferred on separate dates - for example, the 1st on June 8th, the 2nd on July 11th, and the 3rd on July 14th. At what point does the 45-day identification period for identifying replacement property begin? Does it start with the date of the 1st transfer or the date of the last? | |
| 2 August 2006 | |
| If, as part of the same deferred exchange, the taxpayer transfers more than one relinquished property and the relinquished properties are transferred on different dates, the identification period and the exchange period are determined by reference to the earliest date on which any of the properties are transferred. | |
| 2 August 2006 | |
| What would happen if the identification of replacement property was made after the 45 day period ended for the 1st transfer of relinquished property, but was within 45 days of the transfer of the 2nd and 3rd properties? If the original intent was that it all be the same deferred exchange, does the entire exchange fail? Or could the gain on the 2nd and 3rd properties still be deferred while recognizing the gain on the failed first property exchange?
My problem is this - the QI for the taxpayer used the closing date of the last property sold as the starting period for the 45 and 180 day periods. But the first property sold was over a month before this date, so it actually failed the 45 day identification, which was made only days before the end of the period with reference to the 3rd property. This could turn very messy... | |
