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.
Read more about this topic: Like-kind Exchange
Famous quotes containing the words time and/or money:
“Every good time that goes on too long turns into a hell.”
—Mason Cooley (b. 1927)
“The notion of making money by popular work, and then retiring to do good work, is the most familiar of all the devils traps for artists.”
—Logan Pearsall Smith (18651946)