Under section 1031 of the U.S. Internal Revenue Code, a 1031 Exchange allows investors to defer capital gains tax when they sell any property for productive use in trade, business, or investment, and reinvest the proceeds from the sale within specific time limits into a property or properties of like-kind and equal or higher value.
So, what is an Extended 1031 Exchange?
Typically, in a 1031 Exchange the replacement property must be identified within a 45-day period, however, unknown to most, contracts can be negotiated to allow for additional days during an escrow period to provide more time. The following article highlights the steps that are necessary to add the extensions of escrow into the agreement.