9
DEFRA section 77(b)(3), 98 Stat. 596, made the new section
1031(a)(3) effective for transfers made after July 18, 1984, in
tax years ending after that date.
Qualification Under Section 1031(a)(3)(A)
First, we consider whether the projected exchange of
properties qualifies under the restrictions of section
1031(a)(3)(A)--that the desired properties to be received in the
exchange be specifically designated by the exchanger within 45
days. We reject the suggestion that section 1031(a)(3)(A) was
not satisfied in this case because an excessive number of
properties were designated. The statute, which we have quoted
above, only requires that the designated replacement properties
be specified within 45 days after the date on which the taxpayer
transfers the property relinquished in the exchange. In the
instant case, that means 45 days after petitioner husband
transferred the Tesconi property to the facilitators, which was
December 22, 1988. Forty-five days thereafter was February 5,
1989, and prior to that date, petitioner husband had designated
all the desired replacement properties. At that time, there was
no further limitation on the application of section
1031(a)(3)(A). In an attempt to limit the number of properties
that could be so designated, section 1.1031(k)-(1)(c), Income Tax
Regs., was adopted by T.D. 8346, 1991-1 C.B. 150, 157. The
regulations, however, are prospective only as they apply to
transfers of property made on or after June 10, 1991. At the
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