Deferred Like-Kind Exchange: Time Is Money
In Starker v. United States,(see section 1031) the court held that a taxpayer was entitled to section 1031 non-recognition upon the ultimate receipt of like-kind property, even though the taxpayer in that case had already transferred the property to the buyer and even though the taxpayer had up to five years to identify the replacement property. Congress responded to this ruling by imposing time limits on the identification and receipt of replacement property.
Nowadays, taxpayers must identify the replacement property within 45 days of the transfer of like-kind property. Taxpayers must also receive the replacement property within 180 days of transfer of like-kind property.
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Famous quotes containing the words time and/or money:
“Back out of all this now too much for us,
Back in a time made simple by the loss
Of detail, burned, dissolved, and broken off
Like graveyard marble sculpture in the weather,”
—Robert Frost (1874–1963)
“Having money is rather like being a blond. It is more fun but not vital.”
—Mary Quant (b. 1936)