When an exchange involves two parcels of real estate that are adjacent to each other, it can be tricky to figure out whether they should be treated as two exchanges or a single exchange. This is a distinction with a difference! It matters because the 45-day identification rules and the 180-day replacement-property rules cover only a single “property,” which might or might not include two adjacent properties. It can also matter for purposes of the carryover holding period, the rules regarding when and how boot is taxed, and other related rules.

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