Real Estate Withholding Statement
When are funds ready for Deferred Sales Trust™?
According to IRC section 1031 guidelines, the funds will be stuck in the exchange until the exchange ends.
Here are the timeframes in which the exchange can/will end:
- At the end of the 45th day if no property is identified for replacement. On Day 46 the funds may move into the Deferred Sales Trust.
- Between days 46-180 if the property is identified and ALL identified property is purchased. The day after this the funds may move into the Deferred Sales Trust.
- At the end of the 180th day if the property is identified but not purchased. Funds may move into the Deferred Sales Trust.
⚠️ NOTE: To clarify if there are any properties identified and not yet purchased by you in your 1031 exchange past your 45 day ID period, we cannot move the funds into the Deferred Sales Trust™ until the 181st day of the 1031 exchange.
Fill out this form with your CPA to file for your personal tax return.