It is well past the deadline to file your personal income tax return for the 2007 income tax year. You should have filed it by April 15, 2008 unless you filed for an extension of time to file.
Receiving Lots of Income Tax Related Questions
However, I have been receiving a lot of calls over the last few weeks from taxpayers as well as income tax advisors and preparers asking when and how to report their 1031 exchange transaction on their income tax returns. So, we clearly have a lot of people operating under an extension of time to file their income tax return who are just now getting around to the fun process of completing their income tax returns and reporting their 1031 exchange transaction.
Reporting Your 1031 Exchange for Income Tax Purposes
Your 1031 exchange transaction should be reported on your Federal income tax return for the year in which your 1031 exchange began. For example, if you sold your relinquished property in 2008 and subsequently acquired your like kind replacement property in 2009 your 1031 exchange would be reported on your 2008 Federal income tax return.
It is extremely important that you file an extension of time to file your Federal income tax return, then complete your 1031 exchange transaction, and finally file your Federal income tax return and report your 1031 exchange transaction on IRS Form 8824 if your 1031 exchange transaction straddles two (2) income tax years. Read more about the 1031 exchange deadlines.
You can read a lot more about reporting your 1031 exchange for Federal income tax purposes on our website at http://www.exeter1031.com/reporting_1031_exchange_for_income_taxes.aspx including links to the various forms that will be needed.
You are always welcome to contact us with questions as well.
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