Death and Taxes Despite Government Shutdown



For years, people have wondered what would really happen if the federal government stopped working or essentially shut down. Welcome to today’s world where wonders of the past are actually occurring. And with all of the intricacies involved, how can a real estate transaction involving a 1031 Exchange get mixed up with the government shutdown?

Many people will use a 1031 Exchange to defer the taxes that would be ordinarily due upon the sale of the investment real estate by purchasing another piece of investment property. Typically, after a seller closes on their sale property, the tax code allows 45 days to identify new property and 180 days to close. With the shutdown occurring, what happens when there is a government issued loan or other government documentation needed to close the transaction? Does that mean the taxpayers get a timing break until the government starts back up and can effectively close the deal? Is there a chance extensions will be granted?

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