1031 Exchange

[Brian EA]

Taxpayer sold Rental building on December 1st, 2021. He purchased 3 other rental buildings in January of 2022 in a 1031 exchange.
Extension has been filed for 2021.
Can I close the deal by reporting the purchases completed in 2022 on the 2021 return or do I have to wait until I file the 2022 return?
Thanks
Brian

[Dusty2004]

This does not sound like a 1031 exchange but as a sale of one asset and a purchase 3 assets.

[TAXNJ]

Do the “rules” below help?

https://peakexchange.com/multiple-property-exchanges-basics/

[Brian EA]

All the rules were followed in the 1031 exchange.
My question is: Can I close the deal by reporting the purchases completed in 2022 on the 2021 return or do I have to wait until I file the 2022 return?
Thanks

[Dusty2004]

Brian: If the rules were followed then you poorly described what happened. He could not sell them in December and purchase 3 new ones in January. It has to be all one transaction and it has to be handled by a third party. Did he sell it in December? Did he purchase then in January? Did a third party intermediary do all the transactions?

[TAXNJ]

All the rules were followed in the 1031 exchange.
My question is: Can I close the deal by reporting the purchases completed in 2022 on the 2021 return or do I have to wait until I file the 2022 return?
Thanks

see the link below page 3. Does that help?

https://www.1031corp.com/hubfs/docs/2020%20Exchange%20Reporting%20Guide.pdf

[Brian EA]

Brian: If the rules were followed then you poorly described what happened. He could not sell them in December and purchase 3 new ones in January. It has to be all one transaction and it has to be handled by a third party. Did he sell it in December? Did he purchase then in January? Did a third-party intermediary do all the transactions?

Building was sold in December and handled by a third-party intermediary. Three replacement buildings were purchased in January 2022.

[TaxGuyBill]

2021.

https://www.irs.gov/instructions/i8824#en_US_2021_publink12597kd0e140

[TAXNJ]

Building was sold in December and handled by a third-party intermediary. Three replacement buildings were purchased in January 2022.

Hopefully you worked closely with the “third party” 1031 expert.

If you read the rules and it conforms and read “The 45-day identification period and 180-day exchange periods start when the first of several sales close”, and references provided, do you still have an issue?

[Brian EA]

Hopefully you worked closely with the “third party” 1031 expert.

If you read the rules and it conforms and read “The 45-day identification period and 180-day exchange periods start when the first of several sales close”, and references provided, do you still have an issue?

Everything was done according to the rules of a 1031 Exchange.
The question is: Can I close the deal by reporting the purchases completed in 2022 on the 2021 return or do I have to wait until I file the 2022 return?
Thanks

[TAXNJ]

Everything was done according to the rules of a 1031 Exchange.
The question is: Can I close the deal by reporting the purchases completed in 2022 on the 2021 return or do I have to wait until I file the 2022 return?
Thanks

Does page 3 of the attachment specifically “When to Report an Exchange” address your issue? Have you read it?

[Brian EA]

Does page 3 of the attachment specifically “When to Report an Exchange” address your issue? Have you read it?

Yes, it has.
Thanks
Brian