What if the taxpayer cannot identify any replacement property within 45 days or close on a replacement property before the end of the exchange period?

Unfortunately, there are no extensions available, except for a Disaster Declared by the President, in which case 120 additional days are available. If the taxpayer does not meet the time limits, the exchange will fail and the taxpayer will have to pay any taxes arising from the sale of the relinquished property.

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