ARE THERE TIME RESTRICTIONS?

The I.R.S. does not require that the exchange happen simultaneously, and, indeed, from a practical standpoint, that is often difficult to arrange. You have 45 days from the date of closing on your relinquished property to identify your replacement property or properties. (This 45 day rule is satisfied if you actually receive your replacement property before the end of the 45 days.) From the date of closing, you have the earlier of 180 days after the transfer of your property or the due date of your federal income tax return (including extensions) to close on the property or properties you identified. Saturdays, Sundays and holidays count when computing the time restrictions.

Timeline

Start 45 days 180 days
Closing day of sale of relinquished property Last day to identify Replacement Property Last day to close on Replacement Property

HOW DO I IDENTIFY PROPERTY?

NOTE: The content of this website is informational only. It does not constitute tax, legal or accounting advice. Each situation is different and you are advised to seek appropriate professional advice to see if a 1031 Exchange meets your needs.