Deadlines

In a 1031 exchange, there are several important deadlines that need to be followed to ensure compliance with the IRS regulations. These deadlines include:

1. Identification Period: You have 45 calendar days from the date of closing on the relinquished property to identify potential replacement properties. The identification must be made in writing and delivered to a qualified intermediary (QI) or another party involved in the exchange.

2. Exchange Period: After identifying potential replacement properties, you have 180 calendar days from the date of closing on the relinquished property to complete the exchange. This includes both the identification period and the exchange period.

3. Receipt of Replacement Property: The replacement property must be received by the earlier of the 180th calendar day or the due date of the taxpayer’s tax return, including extensions, for the tax year in which the relinquished property was sold.

It is crucial to note that these deadlines are strict, and failing to meet them may disqualify the exchange, resulting in the recognition of capital gains and potential tax liabilities.