Posted by JHyre in Ohio on November 05, 2001 at 11:04:57:
The 180 days on the particular 1031 that you are dealing with end in Feb. So the exchange started in early September…let’s say Sept 5th. The 45 day period to designate replacement properties for that exchange would have passed on October 20th. You presumably did not designate the target property before October 20th. As such, proceeds from the property relinquished on Sept 5 1031 may not be used to purchase target. Sounds like you are on the hook for the tax on the $75k. If you sell the “new” property, any gain on THAT property can be deferred (assuming no dealer issues, etc.), but NOT the gain on the Sept. 5th property. Bummer. Sounds like you may need another drink.