1031 Exchange Deadlines

1031 Exchange Deadlines

There are two deadlines associated with a 1031 exchange.

• The 45-day deadline: In a delayed 1031 exchange, you have 45 days in which to identify the replacement property, from the day you sell your relinquished property. Once you identify the property, you have to submit the Identification of Replacement Property form, which is a written announcement of your choice, to your qualified intermediary or accommodator for the exchange. You can change the replacement property within the 45-day period if you so desire.
• The 180-day deadline: Once you transfer title of your relinquished property, you have 180 days to close on the sale. There is a caveat to this deadline though. If your Federal tax returns are due for the year in which you sold the relinquished property before the 180 days are up, you will have to complete all formalities associated with the purchase before your tax due date. This period includes extensions for time to file. In other words, unless you complete the sale of your relinquished property before October 17 of any year, you will have less than 180 days to finalize the purchase of your replacement property.

No extensions on account of weekends and holidays are allowed for either deadline.