As the July 15 Deadline Nears, 1031 Exchange Investors Confront a Supply Pinch and "Rich" Pricing

Because of the pandemic, the IRS in April pushed this year’s deadline to July 15 for identifying or buying a replacement property in order to complete a 1031 exchange deal. According to the IRS, Section 1031 of the Internal Revenue Code lets an investor put off paying federal taxes on capital gains from the sale of a real property if the proceeds are reinvested in a similar property through a “like-kind exchange,” or swap. Opportunity zone funds, established through the federal Tax Cuts and Jobs Act of 2017, offer several tax benefits for commercial real estate.