1031 Exchange Date Calculator
Exchange Deadlines Overview
In order for an exchange to be considered valid, the Exchanger must meet two critical deadlines.
Identification Period: The Exchanger is required to identify the Replacement Property within 45 calendar days after the initial transfer of the Relinquished Property.
Exchange Period: The Replacement Property must be received by the Exchanger within the earlier of two timeframes: either within 180 calendar days following the transfer of the first Relinquished Property, or by the due date (including any extensions) of the Exchanger’s tax return for the tax year in which the first Relinquished Property was transferred.
Please note that the 45-day Identification Period and the 180-day Exchange Period have strict deadlines that cannot be extended, even if the 45th or 180th day happens to fall on a Saturday, Sunday, or legal holiday. However, there is an exception where these periods can be extended by up to 120 days if the Exchanger is eligible for a disaster extension in accordance with Rev. Proc. 2007-56.
A Common Mistake
Here’s a frequent mistake people make during a 1031 exchange. It’s commonly believed that 180 days is the standard timeframe for a 1031 exchange, but that isn’t always true. The IRS expects to see the sale of your previous property and the purchase of your new replacement property on the same tax return. If your federal income tax filing deadline arises within that 180-day window, you only have until your filing deadline instead of the full 180 days.
Consider this example: If you sell your previous property on December 20th and you’re an individual, you would typically file your tax return by April 15th. However, there are not 180 days between December 20th and April 15th. If you don’t request an extension from the IRS, you won’t get the full 180 days for your exchange.
For businesses, the situation can be even more complex. S corporations and C corporations might have a filing deadline of March 15th instead of April 15th. It’s crucial to know your tax deadlines to ensure you have the full 180 days, or that you secure an extension from the IRS.