Tax Advice Needed: 1031 Exchange Commercial Real Estate

Just sold $3Million piece of commercial real estate. 2008

Buying another piece that is in the ballpark of $3Milllion.

That project is 1+ years behind its intended schedule and cannot purchase until then.

What is my deadline for this exchange? Are extensions granted? How do I go about getting these extensions?

Any suggestions?

You have 45 days to identify the property (sounds like you already have), and 180 days to complete the exchange (receive the new property). See Publication 544 (http://www.irs.gov/publications/p544/index.html) for more information.

That project is 1+ years behind its intended schedule and cannot purchase until then.

I'm confused. You can't purchase the property until it's one year behind schedule? Do you have to do time travel for that?

I'm confused. You can't purchase the property until it's one year behind schedule? Do you have to do time travel for that?


Sorry. I was trying to keep it simple. What I meant is that the purchase cannot go through until construction is complete on the property that I am trying to exchange for. Due to delays, it is 1.5+ years behind schedule and I was looking for a way to shelter the money until I reinvested it.

I have never worked with these, but there is a vehicle called a TIC (Tenants-In-Common) that can be used for 1031 Exchanges. Essentially, if I understand it fully, you participate in a consortium that owns properties (like a mutual fund, more or less) and the participation in the consortium qualifies for the 1031 exchange. You park your money there until your next property becomes ready (in theory). I'd be concerned about liquidity of shares, for starters.

Anyone have any additional insights to offer?