What Are The Time Limits for 1031 Tax Exchange?

Top 50 Questions about Farmland

Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. What are the time limits for a 10 31 tax deferred exchange? Lot of numbers you need to know here. First off, when is a sold price? So what is the sale date? Is it when the auctioneer says sold? No, it's not. It's when you actually change the funds, exchange the funds, or CH or funds change hands rather.

Um, that is the closing date. So that is the date that they put as the sell date or the sold date. Now from there, you have 45 days forward to recognize or identify a new property. After that, once you recognize that property, there's a couple rules to how you can identify, but once you get that done, you have 180 days to close on it.

So what does that mean? I have 180 days to, again, exchange the money. I gotta take the money from the property that I sold and exchange it into the property that I'm buying. In the, in the interim, what happens in the middle? It actually gets put with a qualified intermediary and it, it goes in a separate trust account.

That's an LLC made for your transaction, your 10 31 tax deferred exchange. So hopefully that helps with some timelines. You got 45 days and 180.

David Whitaker | Iowa Land Guy