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Property Identification and Closing Deadlines

| May 15, 2018
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Property Identification and Closing Deadlines

With any 1031 Exchange, there are two VERY important time deadlines of which you should be aware:

The First Deadline - You only have 45 days from the time of the close of escrow on your relinquished (sold) property to designate and identify your replacement property(ies).

There are actually three different ways you can accomplish this, but the big deal here is that the 45-day ID period is set in stone and includes weekends and holidays.  Therefore, 45 days means only 45 days!  If you don’t identify Like-Kind property[ies] within that time period, a taxable event will take place, and a very unhappy camper you will be.

The Second Deadline - You must complete the purchase of one or more properties no later than 180 days from the sales closing of your relinquished property, OR by the date (including extensions) of your Federal Income Tax return [for the year in which your relinquished property was sold].

As you can clearly see, these two rules are very specific, with virtually no leeway.  If you are considering a 1031 Tax Deferred Like-Kind Real Estate Exchange, call us to explore how we can help you navigate a successful 1031 Exchange.

 

Could a 1031 DST Exchange make sense with your specific circumstances? Deferring taxes on highly-appreciated investment property can be a long-term wealth builder. If you have any questions about 1031 Exchanges or want info on our current 1031 DST offerings, please contact me, Dave Pimper, at 1-800-727-1031 or at www.1031propertyxchange.com.

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This type of investment is subject to risks, including those real estate risks associated with the operation and leasing of retail properties. These investments are for Accredited Investors only. There can be no assurance the investment objectives will be achieved.

This material is neither an offer to sell nor the solicitation of an offer to buy any security, which can be made only by the Private Placement Memorandum (PPM), filed or registered with appropriate state and federal regulatory agencies, and sold only by broker/dealers authorized to do so.

Securities offered through Calton & Associates, Inc. 2701 N. Rocky Point Dr., Suite 1000, Tampa FL 33607 (813) 264-0440. 1031 Property Xchange and Calton & Associates, Inc. are separate entities.