About 2013 Tax Deadlines: Everything You Need to Know
As a commercial real estate investor in the US, it is important to know about 2013 tax deadlines. If you don't file your taxes on time, you could face penalties and interest charges from the Internal Revenue Service (IRS).
In this article, we will provide a comprehensive overview of all the tax deadlines you need to know about in 2013. We'll also offer some advice on how to stay organized and make sure that you're ready to file your taxes by the deadline.
What Is the 1031 Exchange Deadline
If you have made a profit from selling a home, you must file your taxes by April 15, 2013, in order to be eligible for the benefits offered under the 1031 exchange rule. If you do not meet the filing deadline and wish to claim these benefits later, then of course you will be denied unless you have filed a 1031 exchange extension with the IRS.
You can also apply retroactively but only within three years of when it was originally due or two years after paying any tax owed. The application process ends up about six months after all paperwork has been approved by both the state and federal tax authorities.
What about the deadline for paying property taxes?
According to the IRS 1031 exchange rule, the final deadline for paying the 2013 property taxes is January 31, 2014, considering that you have filed for an extension. If you fail to pay by this date, you will be charged a penalty of one percent per month on the unpaid balance.
You should also keep in mind that if you make late payments, it could affect your eligibility for any future mortgage financing. In some cases, lenders may even refuse to issue a loan if there is evidence that your property has been delinquent in its tax payments.
What about state and local tax deadlines?
Each state has different deadlines for filing taxes at the state and local levels. It is important to research these deadlines so that you can ensure that you are ready to file your taxes by the appropriate dates.
What Are the Tax Ramifications of 1031 Exchange Transactions
As what founder and president of NNN Deal Finder Dwaine Clarke wrote about 2013 tax deadlines, you have about 45 days to identify a like-kind replacement property; 180 days to close on that identified and qualified property; and about 365 days (plus or minus how many days the due date is moved because of weekends and holidays) to actually complete the exchange without penalty. So, if all goes well, there's really no rush at all. But if any of those dates are not met, then there can be costly penalties.
The takeaway is that 1031 exchange investors should start planning their exchanges as soon as possible in order to avoid any penalties for missing deadlines.
How Far Does the IRS Go Back for Unfiled Taxes
If you have not filed taxes for a few years, it is important to know how far back the IRS will go in order to collect any penalties. Typically, they are able to audit your tax returns up until three years ago in most cases, but there are exceptions, such as:
If they think there was fraud involved during those transactions.
When someone files late because of complications with their mental health.
For example, if the IRS believes that fraudulent activity occurred within two years from when an individual last filed their taxes, then they may choose to audit them for this period and extend it if necessary. This would mean auditing all records associated with income and anything else they deem relevant, including bank accounts.
What about the IRS Voluntary Disclosure Practice?
The IRS has a voluntary disclosure policy that allows those who had 1031 exchange transactions to come forward without penalty if they have not filed their taxes for several years. This means that you will avoid any criminal charges and only pay what is owed in “back taxes”, plus interest accrued over time.
However, it does require an admission of guilt by admitting non-compliance within six months prior to starting negotiations with authorities about coming clean about all unpaid liabilities from previous years. In addition, there may still be additional penalties assessed based on circumstances surrounding each individual case, such as the amount owed, so please consult a tax professional before proceeding.
1031 Exchange Timeline That You Should Know from 2021 Onwards
As previously mentioned, the 1031 exchange timeline 2021 property investors should know is 45 days from the date of sale for a relinquished property, which means you have more time to sort out what you owe. And, you have the allowance of about 365 days (plus or minus how many days the due date is moved) to actually complete the exchange without penalty.
This gives you a little more breathing room, but it's still important to start planning your exchanges as soon as possible in order to avoid any penalties for missing deadlines.
How to Stay on Top of Your Commercial Property Tax Deadlines
As a commercial property investor, it is important to know about 2013 tax deadlines and stay on top of such duties. This includes knowing when state and local taxes are due, as well as the ramifications for not filing your taxes by the appropriate date.
In addition, be sure to research the IRS voluntary disclosure policy if you have not filed your taxes for several years so that you can come forward without penalty.
By following these tips, you can ensure that you are ready to file your taxes by the appropriate dates and minimize any penalties assessed.
For more information about 2013 tax deadlines for commercial real estate investors in the US, please consult a qualified tax professional.
How a Property Tax Professional Can Help
A property tax professional will not only ensure that you are filing your taxes by the appropriate date, but they can also provide guidance about whether or not you should pursue the IRS voluntary disclosure policy.
Also, if you are considering filing for an extension, then a qualified tax expert can provide advice about how long this process takes and whether or not it will affect your finances.
If you are using a property manager, it is also important to note that they should be consulted about any changes in state or local regulations regarding commercial property taxes before they proceed to manage your real estate portfolio.
What Else Should You Know About the 1031 Exchange Timeline
The IRS will continue to allow investors to defer taxes on like-kind exchanges until 2026 if they meet all of the requirements. This means that investors have about five years to complete such an exchange, and the 45-day timeline from 2021 still applies.
It is important for investors to remember that they cannot take possession of the replacement property until all funds from the sale of the relinquished property have been received.
For more useful information about this matter, you can visit the IRS official page.
Conclusion
If you are a real estate investor, it is vital for you to know about 2013 tax deadlines. Not only does this ensures you are on top of your finances, but it also keeps you away from the hefty fines and penalties that might be imposed if you fail to meet these deadlines.
If you need more tips and pieces of advice that you can use in your real estate business, feel free to browse our site!
