The following two deadlines must be met for a like-kind exchange to qualify for tax-free treatment:
1. You must identify (or actually receive) the replacement property within 45 days of transferring legal ownership of the relinquished property.
2. The replacement property’s title must be transferred to you within the earlier of 180 days or your tax return due date, including extensions, for the tax year of the transfer.
The 180-day period begins on the date the legal ownership of the relinquished property is transferred. If that period straddles two tax years, it might be cut short by the tax return due date. Example: If you gave up title to the property in November or December 2007, the April 15, 2008, due date for 2007 returns would arrive before the 180-day period. File for an automatic extension if needed.
- Small Business Tax Deduction Strategies No matches