1031 Exchange Deadlines
We know it may seem like a lot to remember, so let’s break it down pretty simply to help you remember the important dates in your 1031 exchange:
Before Closing on the Relinquished Property- Before you close on your relinquished property, you must contact a QI (like us!) to begin setting up your exchange for you. Once you close on your property, it is too late to begin the exchange if you have not done so already.
Day 1- Day 1 refers to the day of closing on the relinquished property. This is where the official timeline begins!
Day 45- Complete and deliver your 45-day replacement property identification form to your QI. Remember, you can list up to 3 properties you would like to purchase as your replacement. You may purchase more than one property, as long as it is properly listed on your identification form. You can resubmit a 45-day form if you change your mind about properties, or if one or more of the properties become unavailable, but the last 45-day form you give to your QI within this time period will be the one you must purchase from. If no 45-day form is turned in by day 45, the opportunity to do a 1031 exchange is gone, and the QI returns the exchangers cash to them on day 46. The exchanger will pay tax on the sale of the relinquished property as a normal sale.
Day 180- If you have not closed on your replacement property yet, today is the day. By day 180, you should be closed and in title to your replacement property. If you close on day 181 or thereafter, your exchange is toast! The IRS will not give any extensions.
All of these dates are calendar days, NOT business days. This includes weekends and holidays!