the 45-day 1031 Like-Kind Exchange Deadline

A bill introduced in the U.S. Senate would remove the strict 45-day deadline for identifying Section 1031 replacement property like-kind exchange requirements under the Internal Revenue Code.

The 1031 Exchange Improvement Act allows taxpayers to roll earnings from real estate sales deferring its capital gain until the eventual sale of the ultimate property. 

Of the bill, Sen. Lee said, “The 1031 Exchange Improvement Act will allow American investors to acquire new properties in a tight real estate market without the ticking time bomb of the IRS looming over their shoulders. This bill will allow Americans flexibility to make the best decisions while still protecting federal revenue.” 

Repealing the 45-day deadline, while retaining the 180-day deadline will help reinvestment and economy growth.