Your sale closes
Proceeds go straight to your segregated exchange account, never through your hands.
Identification deadline
Replacement property must be identified in writing by midnight.
Closing deadline
You must have acquired the replacement property. No extensions.
DAY 0
Your sale closes
Proceeds go straight to your segregated exchange account, never through your hands.
DAY 45
Identification deadline
Replacement property must be identified in writing by midnight.
DAY 180
Closing deadline
You must have acquired the replacement property. No extensions.
The 45-day identification period
You have 45 calendar days from the closing of your relinquished property to identify potential replacement properties. The identification must be in writing, unambiguous, and delivered to your Qualified Intermediary. Weekends and holidays count; day 45 is day 45 even if it falls on Christmas.
See also How many properties you can identify: the three-property, 200%, and 95% rules
The 180-day exchange period
You must receive your replacement property within 180 calendar days of the sale closing, or by the due date of your tax return (including extensions) for the year of the sale, whichever comes first. That second clause surprises people: a sale that closes late in the year can have a shorter window unless you extend your return.
What happens if a deadline is missed
The exchange fails, in whole or in part. Unused funds return to you and the deferred gain becomes taxable. There is no appeal process, which is why we track every date and send automatic notices from the day your exchange opens, so a deadline never arrives unannounced.
Practical advice
- Start looking for replacement property before your sale closes; the 45 days go faster than anyone expects.
- Identify backup properties. If your first choice falls through after day 45, you can only buy what you identified.
- Closing late in the calendar year? Talk to your tax preparer about extending your return to protect the full 180 days.