Reverse 1031 Exchange

[David]

LLC owns a commercial building that is rented to the LLC members' S Corp business. The LLC members are the same as the S Corp shareholders.

On 12/10/19 the LLC did what they call a reverse 1031 exchange. They used a 1031 agent and purchased a new building, which they moved into in early 2020. They have yet to sell the old commercial building. 

I have never done a reverse 1031 exchange and will have to research further all of the intricate details of how to handle this.

My main question now is that, as far as I understand, the 2019 tax return can't be filed until the relinquished building has been sold or the 180 day deadline (6/10/20) has expired. Therefore, an extension has to be filed.

Is my understanding correct?

Thanks for your help. 

 

[grandmabee]

Yes,  Extension

[David]

Thanks.