New guidelines from the IRS extend the timeline for 1031 exchanges. Deadlines for both identification and closings that fall between April 1 and July 15 have been extended until July 15, CO reported.
- Challenging time for investment sales brokers continues: In a 1031 exchange, a seller can defer capital gains on the sale of income-producing real estate if the proceeds of the sale are reinvested in a similar property. The new asset must be identified within 45 days of the initial sale, and the acquisition closed within 180 days.
- Worth Noting: For investments in qualified opportunity zones businesses, the IRS has given investors an additional 24 months to improve their properties, which is necessary to qualify.