What Are The 1031 Exchange Timelines & Rules
Learn About 1031 Exchange Timelines & Like Kind Property
What Are The 1031 Exchange Timelines?
Timelines & Rules
The Properties Being
Exchanged Must Be Like Kind.
Like-kind refers to the nature and character of the properties. Similar classes of property are called “like-kind.” Like-kind requirements differ depending on the type of property you are selling (real property versus personal property ).
The Napkin Test Must Be Satisfied.
The core of an exchange is that something must be given away (relinquished property) and something must be received (replacement property). Property that is sold, and not exchanged, does not qualify.
Measured from when the relinquished property closes, the Exchangor has 45 days to nominate (identify) potential replacement properties and 180 days to acquire the replacement property. The exchange is completed in 180 days, not 45 days plus 180 days.
45/180 Day Exchange Calculator
The time requirements in a 1031 exchange are very specific. From closing on the sale of the relinquished (sale) property, a taxpayer must:
Properly identify potential replacement properties within 45 calendar days (the” Identification Period”) and
Close on the replacement properties within 180 calendar days of the relinquished property sale – OR – the due date (including extensions) for the taxpayer’s tax return for the taxable year in which the relinquished property was transferred, whichever is earlier (the “Exchange Period”)
Based upon the closing date submitted,
the 45-day Identification Period and 180-day Exchange Period deadlines are shown