1031 exchanges are governed by a list of rules that need to be followed in order to complete a successful exchange. In this article, we are going to discuss the important deadlines and time frames that you need to hit in order to complete a successful 1031 exchange.
180 Days
The most important number to remember for your 1031 exchange is 180. In any 1031 exchange, you have 180 days in total to complete your exchange. That clock starts ticking right after you sell your relinquished property.
There are some exceptions to this rule, but in the majority of exchanges, 180 days is the time frame you have in which to conduct your exchange.
45 Days
The next number to keep in mind is 45. After selling your relinquished property, you have 45 days (the first 45 days of your 180 day exchange period) in which to identify your replacement property in writing.
Exceptions to the Rule
There are a few exceptions to these time rules. For example, if your federal tax filing deadline falls within your 180 day period, your exchange period is shortened to the filing deadline. That is a big potential trap that can sink your exchange. The easiest fix for this is to have your qualified intermediary file for an extension so you can take advantage of your entire 180 days.
Twin Cities 1031 Exchange Company
There are a lot of intricacies that can complicate even the simplest of 1031 exchanges. It’s important to have a qualified intermediary on your team so you make sure that your exchange is executed effectively. At CPEC1031, LLC, our 1031 exchange accommodators have decades of experience helping taxpayers with their 1031 exchanges. If you are interested in deferring the capital gains taxes on the sale of your property, consider a like-kind exchange under section 1031. Contact our Twin Cities qualified intermediaries today to get started with your like-kind exchange of real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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