What deadlines apply to a 1031 exchange transaction?
The successful completion of a 1031 exchange transaction requires Investors to comply with certain deadlines pursuant to Section 1031 of the Internal Revenue Code, which have been further clarified within Section 1.1031 of the Department of the Treasury Regulations.
The 1031 exchange deadlines consist of the 45 calendar day identification deadline and the 180 calendar day (or less) exchange period. These deadlines can not be extended under any circumstances, unless the President of the United States declares a natural disaster area that affects the properties or parties involved with the tax-deferred like-kind exchange transaction.
See our article on 1031 exchange deadlines for more complete information.
Can I back-date my identification form to be within the 45 day period?
Absolutely not! The 45 calendar day deadline is part of the Internal Revenue Code. It cannot be extended by the Investor under any circumstances. The act of back-dating, altering or changing the identification after the 45 calendar day deadline has passed is criminal tax fraud and should never be considered under any circumstances.
In fact, the argument can be made that a Qualified Intermediary (Accommodator) that routinely accepts back-dated or altered documents and/or knowingly participates in any type of income tax fraud would lose its Qualified Intermediary status and could have any or all of its 1031 exchange transactions disallowed by the Internal Revenue Service.
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