Did you know the opportunity to legally avoid paying capital gains tax on proceeds from the sale of real property has an expiration date? Under Internal Revenue Code Section 1031, you must follow specific procedures to identify replacement property within 45 days after the property being given up is transferred. Also, you must receive the replacement property by the earlier of (i) the 180th day after the date you transferred the property being given up in the exchange or (ii) the due date of your tax return (including extensions) for the year in which you transferred the property given up.
