1031 Timeline

• 45- Day Identification
• The first node on the 1031 timeline is the 45-Day Identification Period which begins with the closing of the relinquished property. During this time, the client must identify the like-kind replacement property.
• The client may choose a new property by withdrawing the initial identification and making a new one.
• If the replacement property has not been properly identified to the Intermediary by midnight of the 45th day, the Exchange requirements have not been met and the taxpayer will not be eligible for the deferment of the capital gains tax due on the sale
• 180-day Exchange Period

The 180-Day Exchange Period commences at the same time as the 45-day Identification period and requires that at least one of the identified replacement properties has been acquired before this period elapses.

• End-of-Year Rules

In cases where the settlement of the relinquished property occurs between October 16 and December 31, the 180-day Exchange Period will be shortened to the income tax deadline of April 15 of the next calendar year unless the exchanger files an IRS extension. For a corporation, this filing date is March 15 of the next calendar year unless an IRS extension is filed.