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:
“I am already kindly disposed towards you. My friendship it is not in my power to give: this is a gift which no man can make, it is not in our own power: a sound and healthy friendship is the growth of time and circumstance, it will spring up and thrive like a wildflower when these favour, and when they do not, it is in vain to look for it.”
—William Wordsworth (1770–1850)
“[France is] a country where the money falls apart but you can’t tear the toilet paper.”
—Billy Wilder (b. 1906)