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1031 Exchange Timeline
IRC Section 1031 outlines certain requirements that a taxpayer must meet to successfully complete a tax deferred exchange, one of the requirements being timing. The Exchangor has 45 days from the sale of the relinquished property to identify potential replacement properties, followed by another 135 days to close escrow on the replacement property. The total time allowed for the exchange process is 180 days with no exceptions.
The 45-day identification period and the 180-day exchange period are absolute.
EXTENSIONS ARE NOT ALLOWED even if this date happens to fall on a Saturday, Sunday or legal holiday (except for a Presidential Disaster Declaration). If the Exchangor does not meet the time limits of the exchange, the exchange will fail and the Exchangor will be subject to any taxes owed from the sale of the relinquished property.
Day 1
Close on Relinquished Property: Time starts once the relinquished property has closed.
Day 45
Identification Deadline:
The exchangor must identify potential replacement property in which they intend to buy – in writing – within 45 days.
Day 180
Acquisition Deadline:
The replacement property must be acquired on or lesser of 180 days from the time of sale of the relinquished property.
Calculate your Deadlines
Select the date the relinquished (sale) property was closed.
Always verify your exchange deadlines with your tax and/or legal advisor. The above calculations are estimates and do not take into consideration the taxpayer’s potential filing restrictions.