Extensions of Time for 1031 Tax Deferred Exchanges

We are frequently asked if there is any way to extend the deadlines involved in a 1031 Tax Deferred Exchange transaction.  The short answer is no.  There is no way to apply for an extension of the 1031 Exchange deadlines.

The 45 calendar day identification period and the 180 calendar day exchange period (deadlines) are actually part of the Federal Tax Code and as such can not be changed or extended unless authorized by the United States Congress.  Even the IRS can not grant an extension of time. 

There is one exception, and that only exists when there has been a natural disaster and the area and those affected have been declared a natural disaster area by the President of the United States. 

Having said that, there is one possible way to actually have more than 180 calendar days to complete a 1031 Tax Deferred Exchange.  It is not an extension of the deadlines, but rather a more advanced 1031 Exchange strategy where you can combined a Reverse 1031 Exchange with a regular Forward 1031 Exchange.  I will discuss this in my next blog post, so stay tuned.....