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Hi. How are kyou?
It sounds like you may be asking about a 1031 exchange, where he can reinvest in a (like-kind) property and defer that capital gains
Well, and yuo?
OK havg on just a sec and I'll get the exact regs for you
First, your questions about the time line ...
A taxpayer has 45 days after the date that the relinquished property is transferred to properly identify potential replacement properties. The exchange must be completed by the date that is 180 days after the transfer of the relinquished property, or the due date of the taxpayer's federal tax return for the year in which the relinquished property was transferred, whichever is earlier. Thus, for a calendar year taxpayer, the exchange period may be cut short for any exchange that begins after October 17th. However, the taxpayer can get the full 180 days, by obtaining an extension of the due date for filing the tax return.
Also, very importanct is this ...
The IRS regulations are very clear. The taxpayer may not receive the proceeds or take constructive receipt of the funds in any way, without disqualifying the exchange.
there has to be what's called a qualified intermediary
A Qualified Intermediary is an independent party who facilitates tax-deferred exchanges pursuant to Section 1031 of the Internal Revenue Code. The QI cannot be the taxpayer or a disqualified person.
Here's the actual guidance from IRS
I will show thius to him. If I have any more wuestions I will get back to you.
One more things here are the actual qualifications, listed in readable language
What are the requirements for a valid exchange?
You're welcome .... feel free to bookmark this to come back for reference
the links will stay acive
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