When can I file my tax return...?

I am not done with my exchange, when can I file my tax return?

One of the requirements to have a valid 1031 Exchange is that you must report it on your income tax return. If you haven’t purchased your replacement property when you file your tax return, your exchange will be disallowed.

Before you sign on the dotted line of that tax return this year, make sure last year's exchange is actually completed. When you sell a property and begin a 1031 exchange, you have 180 days to close on that new property that you’ve had your eyes on. If you sold your property after October 18, your 180 day deadline will fall after the tax due date of April 15.

If you have already completed your exchange and bought that new property, then file away! But if you have not completed your exchange by taking title to your new property you will need to have your CPA file for an extension. This will allow you to utilize your full 180-day timeline and complete your exchange before you file your taxes. So the best advice we have this month is do not file your taxes for the year 2007 until your 2007 exchange is complete.

--The Experts