Why are the identification rules so time restrictive? Is there any flexibility within them?
The current identification rules represent a compromise which was proposed by the IRS and adopted in 1984. Prior to that time there were no time-related guidelines. The current 45-day provision was created to eliminate questions about the time period for identification and unfortunately, there is absolutely no flexibility written into the rule and no extensions are available.
The current identification rules represent a compromise which was proposed by the IRS and adopted in 1984. Prior to that time, there were no time-related guidelines. The current 45-day provision was created to eliminate questions about the time period for identification and there is absolutely no flexibility written into the rule and no extensions are generally available. The one exception is during natural disasters when Congress can mandate an extension. Should an extension be granted then there is a formal announcement that includes revised 45 & 180 dates, along with special wording that has to be included, in red on the front page of your tax return. If a natural disaster extension applies to your exchange, MEGA 1031 will contact you and walk you through the procedures.
