There’s No Wiggle Room When It Comes To These 1031 Exchange Deadlines

To complete a 1031 exchange, you must follow strict timelines at each stage. Missing a key date could disqualify your exchange, with almost no chances for extensions. Remember two important numbers: 180 and 45. These are the critical 1031 exchange deadlines you must follow closely. You can calculate both using our 1031 deadline calculator.

180-Day Exchange Period

Once an investor sells their current property—called the “Relinquished Property”- they have exactly 180 days to close on their new property, which is called the “Replacement Property.” It’s essential to be mindful of these 1031 exchange deadlines to ensure compliance.

45-Day Identification Period

Within the first 45 days of the 180-day timeline, the investor must identify potential replacement properties. This involves filling out a form with the addresses or legal descriptions of possible purchases. Afterward, the investor signs and sends this form to the Exchange Agent.

During the 45-day period, the investor can amend the list if they change their mind. However, by midnight on the 45th day, the list is locked. It’s crucial to follow these 1031 exchange deadlines closely from the start. Afterward, the investor must buy one of the properties listed.

NO Extensions

Clients often ask if the 1031 exchange deadlines can be extended. The answer is nearly always “No.” Extensions are only granted during national emergencies, such as Hurricane Katrina, Ike, or briefly during COVID-19. Outside of these rare situations, the IRS does not offer deadline extensions or grace periods for 1031 exchanges.

With no flexibility on 1031 exchange deadlines, keep in regular contact with your Exchange Agent. Their role is to keep you on track, ensuring you identify replacement properties and close within the 180-day deadline.

That’s why the company you choose to handle your 1031 Exchange matters. You’ll want to work with a Qualified Intermediary who is experienced, will regularly communicate with you, and will quickly answer all of your questions so that you don’t make a mistake. It’s essential to be aware of all 1031 exchange deadlines during this process. If you are looking for a Qualified Intermediary who can serve you in this capacity, we invite you to contact us at (888) 508-1901 and schedule a time to meet our team. We’d be happy to talk with you and share how WealthBuilder 1031 Exchange can help you accomplish your goals, grow your portfolio, and ultimately build your family’s wealth.