8
have a transaction qualify as a section 1031 exchange do not
matter; what counts is what was actually done. Carlton v. United
States, 385 F.2d 238 (5th Cir. 1967).
Possibly with the purpose of clarifying some confusion with
respect to the limits of section 1031, and the time that might be
allowable in order to complete such a transaction, which would
qualify as tax free, Congress amended, in the Deficit Reduction
Act of 1984, Pub. L. 98-369 (DEFRA), sec. 77(a), 98 Stat. 494,
595, the provisions of section 1031 by adding a new paragraph (3)
to section 1031(a). The new subsection reads as follows:
(3) Requirement that property be identified and
that exchange be completed not more than 180 days after
transfer of exchanged property.--For purposes of this
subsection, any property received by the taxpayer shall
be treated as property which is not like-kind property
if--
(A) such property is not identified as
property to be received in the exchange on or
before the day which is 45 days after the date on
which the taxpayer transfers the property
relinquished in the exchange, or
(B) such property is received after the
earlier of--
(i) the day which is 180 days after the
date on which the taxpayer transfers the
property relinquished in the exchange, or
(ii) the due date (determined with
regard to extension) for the transferor's
return of the tax imposed by this chapter for
the taxable year in which the transfer of the
relinquished property occurs.
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