When the real estate market is hot, it can be a great time to sell real property. And because people don’t want to pay tax unless they have to, it can be attractive to complete a 1031 exchange with the proceeds from the sale. But a hot real estate market can be a difficult time to buy real estate, and if a taxpayer sells real estate, it doesn’t necessarily mean that acceptable replacement property can be found within the timelines required by Section 1031. Private Letter Ruling 201416006, issued earlier this year, provides a little additional flexibility for taxpayers with multiple real estate holdings who complete a reverse 1031 exchange.

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