What is the 45 day Identification deadline of a 1031 Exchange?
When completing a 1031 Exchange transaction you must identify your potential like-kind replacement properties to your Qualified Intermediary no later than midnight of the 45th calendar day following the close of the relinquished property sale transaction. For example, if the sale of your relinquished property closed on October 31st the first day of your 45 calendar day identification period would be November 1 and the 45th calendar day identification deadline would be December 15th.
This 1031 Exchange deadline is exactly 45 calendar days, so if the 45th calendar day lands on a Saturday, Sunday or legal holiday, the 1031 Exchange due date is NOT extended to the next business day.
What is the 180 Calendar Day Exchange Period for a 1031 Exchange?
You must complete your 1031 Exchange transaction, which includes the conveyance (receipt) of title to all of your like-kind replacement properties that you intend to acquire, no later than the earlier of:
(1) midnight of the 180th calendar day following the close of the relinquished property sale transaction, or
(2) the due date of your Federal income tax return for the tax year in which the relinquished property was sold, including any extensions of time to file.
You do not need to be concerned about part (2) above unless the first relinquished property transaction sold and closed on or after October 17th and on or before December 31st of any given tax year, which would mean that the 180th calendar day would fall after April 15.
*Taxpayers will need to file for an extension beyond the April 15 deadline to preserve the full time period of 180 days to complete a tax deferred exchange.
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