Is Your 1031 Exchange at Risk? 3 Timeline Mistakes to Avoid

The 1031 deadlines are strict, but they aren't complicated. Most timeline problems come from a few misunderstandings that are easy to avoid once you know about them.

Mistake 1: Thinking the clock starts at contract

Some investors assume the 45 and 180-day periods start when they go under contract or start looking. They don't. Both start the day your relinquished property closes. That's day 0.

The flip side matters even more: your exchange has to be set up before that closing. If you wait until after closing to call a Qualified Intermediary, it's too late. This situation unfortunately plays out more often than it should.

How to avoid it: Connect us with your closing agent once you're under contract. We can typically have your exchange set up the same day.

Mistake 2: An incomplete or unclear identification

By midnight on day 45, you need to deliver a signed, written identification of your replacement properties to your QI. Each property has to be clearly described, usually by street address or legal description. "A duplex in San Diego" or "a commercial building to be determined" won't count.

The identification also has to follow one of the identification rules: up to three properties of any value, or more than three as long as their total value doesn't exceed 200% of what you sold. Go past both limits and you'll need to buy at least 95% of what you identified, which rarely works in practice.

How to avoid it: Send us your identification well before day 45 so we can confirm it's complete. If a property falls through, you can still change your identification until the deadline.

Mistake 3: Forgetting the tax return due date

Your exchange period ends on day 180 or on your tax return due date for the year of the sale, whichever comes first. For individuals, that matters for any sale that closes after about October 17. Day 180 falls after April 15, and without an extension, your exchange period would end on April 15.

How to avoid it: If you're selling in the fall, tell your CPA you're doing an exchange so they file an extension. With the extension, you have up to and including day 180 to complete your replacement purchase or purchases.

A quick recap

Step	Deadline	What to watch
Sale closes	Day 0	Exchange set up before closing
Identify replacements	Day 45	Signed, specific, within the rules
Close on replacements	Day 180 (or tax return due date, if earlier)	File an extension for fall sales

Plan your dates

Use our 1031 Exchange Timeline Calculator to see your deadlines, and reach out before your sale closes so we can get your exchange set up.

APX 1031 is a Qualified Intermediary. We don't provide tax or legal advice; talk with your CPA or attorney about your situation.