IRS Code Section 1031 states that the replacement property must be acquired on or before the following dates:
 
1.      180 days from the date of the transfer of the relinquished property, or
2.      The filing date the tax return is due for the tax year in which the relinquished property is transferred, typically April 15th (the taxpayer has the right to request an extension-not to exceed 180 days.)
 
For example, the taxpayer closed the relinquished property on Nov. 30th causing a taxable event for that tax year. The replacement property must be acquired by the income tax filing due date (April 15). This would give the taxpayer only 135 days to complete the exchange.
 
So what does the taxpayer do?
 
If the taxpayer has not acquired the replacement property by the filing due date for the tax return (April 15), he must file an extension using Form 4868 which extends the due date for the tax return until August 15th. This will allow the taxpayer, who began the exchange late in the tax year, the opportunity
 
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Exchange Resources, Inc. cannot and does not provide advice regarding specific tax consequences.  Investors considering a 1031 tax-deferred exchange should seek the counsel of their accountant and attorney.