If your 180-Day Exchange Period deadline falls AFTER the due date of your tax return and your exchange is not or will not be completed before the filing deadline, you MUST file for an extension of time. This extension will provide you an additional six months to file your tax return and the benefit of the full 180-Day Exchange Period to complete your exchange. For individual taxpayers who initiated their exchange in 2021 with the sale of their first relinquished property to a buyer, the filing deadline is April 15, 2022.
Filing your return before your exchange is complete WILL automatically end your 180-Day Exchange Period and your sale will be taxable. Taxpayers must file Form 4868 on or before the normal filing date to obtain the automatic extension of time. Once your return is filed, you cannot amend your return to include the exchange or obtain an extension of time to complete the exchange. You may be required to pay estimated taxes.
Please feel free to contact your 1031 CORP. Exchange Officer with questions regarding the reporting of your exchange or filing for an extension.