LEGAL HOTLINE ARCHIVE
Internal Revenue Service Code 1031

Q. You have asked what date a listing agreement should be dated and the effect thereof on an Internal Revenue Code Section 1031 exchange.

A. The rules and requirements for qualification under an Internal Revenue Code Section 1031 are very complex. The seller should consult with a tax attorney to determine the specific requirements for qualification as it relates to his particular situation

Generally, Listing Agreements should be dated with the date on which they are signed. Because the listing agreement merely puts the property on the market, it usually should have no effect on an Internal Revenue Code Section 1031 qualification.

Generally, under an Internal Revenue Code Section 1031 the replacement property received by the seller must identified on or before the 45 day following the date on which the seller transfers the property relinquished in the exchange. For purposes, of this rule the closing date, rather than the listing date, is often the measuring date.

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