1031 Deadline Calculator

You must identify your potential like-kind replacement properties to your qualified intermediary no later than midnight on the 45th calendar day after the sale of your relinquished property closes.

These are calendar days, not business days. If the 45th day lands on a Saturday, Sunday or legal holiday, the deadline is not extended.

If you complete the purchase and receive the replacement property before your 45-day identification period ends, that property is automatically treated as identified. You do not need to provide a written identification for that property to your Qualified Intermediary (QI). Signing a purchase agreement alone does not satisfy this exception.

This applies only to properties you actually acquire within the 45-day period. Any additional property you intend to acquire afterward must be identified in a signed written notice to your qualified intermediary before the deadline.

For example, if you acquire one property on day 30 and plan to acquire another on day 90, you must identify the second property before your 45-day period ends. The property acquired on day 30 also counts toward the applicable identification limits.

If you and your qualified intermediary (QI) are in different time zones, do not assume your local midnight is the deadline.

• Check with your QI: Your exchange agreement or your QI’s procedures may specify when an identification must be received.
• Do not wait until midnight: Submit your identification early enough to avoid any question about whether it was timely.

You must complete the exchange — including taking title to every replacement property you intend to acquire — by the earlier of:

• midnight on the 180th calendar day after your relinquished property sale closes, or
• the due date of your federal income tax return for that tax year, including extensions.

The tax return deadline may shorten your 180-day exchange period if your property closes late in the year.

In that case you may need to file for an extension to preserve the full 180 days. Discuss it with your tax professional — NexTrend Securities is not a tax advisor and does not provide tax advice.

If you end up with leftover cash ("boot") or decide not to complete your exchange, you cannot take your money back whenever you choose. Under Treasury Regulation §1.1031(k)-1(g)(6), your exchange agreement must limit when the qualified intermediary (QI) can release funds to you.

During the 45-day identification period, you generally cannot receive any of the funds. Even if you decide on Day 10 not to buy a replacement property, the QI must hold the money until the 45 days end. If you did not identify any replacement property, the funds can be released after Day 45.

If you did identify replacement property, the QI can release the remaining funds only when you have received all of the replacement property you are entitled to under your exchange agreement; when a material and substantial contingency occurs after Day 45 that relates to the exchange, is provided for in writing in your exchange agreement, and is beyond your control (for example, the identified property is destroyed before closing); or when the exchange period ends.

Any cash released to you is generally taxable. Your exchange agreement governs these terms, so review it with your QI and tax advisor before you sign.