1031 Exchange Timelines
1031 Exchange Timelines: Key Dates and Deadlines You Need to Know
Looking to defer capital gains tax through a 1031 exchange? Understanding the timeline is crucial. Missing even one deadline could disqualify your exchange and cost you thousands in taxes.
In this guide, we’ll break down the full 1031 exchange timeline step-by-step so you can plan with confidence and avoid costly mistakes.
What is a 1031 Exchange Timeline?
A 1031 exchange timeline refers to the strict deadlines set by the IRS for identifying and closing on a replacement property after selling your investment or business property. The two most important milestones are:
• 45-Day Identification Window
• 180-Day Exchange Period
These timelines are non-negotiable—and the clock starts ticking the moment your original property sells.
The 1031 Exchange Timeline Step-by-Step
STEP ONE: DAY 0 | CLOSE ON RELINQUISHED PROPERTY
Your 1031 exchange officially begins the day you close on your original property. From here, all deadlines are calculated.
Important: Engage a Qualified Intermediary (QI) before this closing to ensure your exchange is valid.
STEP TWO: DAY 1-45 | IDENTIFY REPLACEMENT PROPERTY
Within 45 calendar days, you must identify up to three potential replacement properties in writing and submit it to your QI.
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You can identify more than three properties if you follow the 200% or 95% rule.
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Changes are not allowed after day 45.
Important: Missing this deadline disqualifies your exchange.
STEP THREE: DAY 46-180 | CLOSE ON REPLACEMENT PROPERTY
You must complete the purchase of one or more identified properties within 180 calendar days of the sale of your original property.
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The 180-day deadline includes the 45-day identification period.
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If your tax return is due before the 180 days, you must close before filing, unless you file an extension.
48/180 DAY EXCHANGE
How many days do I have?
Enter the date the relinquished property (sale) was closed:
FAQs About 1031 Exchange Timelines
WHAT HAPPENS IF I MISS THE 45-DAY DEADLINE?
The exchange fails and becomes a taxable sale. No exceptions.
CAN I EXTEND THE 180-DAY DEADLINE?
Only if the IRS grants relief due to a federally declared disaster. Filing a tax extension does not extend your 180-day window.
DOES THE TIMELINE INCLUDE WEEKENDS AND HOLIDAYS?
Yes—all calendar days count. Plan accordingly.
