What Is the Timeline for a 1031 Exchange Application?
In a typical 1031 exchange, the property owner has 45 calendar days from the closure of the sale of the current or "relinquished" property to identify the replacement property. The property owner should already have in place a qualified intermediary and be prepared to complete necessary paperwork related to the current property and prospective new property.
Once the new property has been identified, the owner has 135 more days (180 calendar days in total from the closure of the sale of the current property) to complete the 1031 exchange and close on the purchase of the new property.
By the last day, the property owner must also file income taxes for the year in which the current property was sold to obtain the deferral.
Property owners may be able to obtain an exemption for this timeline when the property or the property owner is in a declared disaster area during the 1031 exchange process.
Note that the property owner can withdraw the 1031 exchange application prior to identifying the replacement property. After that property is identified, however, the application can no longer be withdrawn.
- What Is a 1031 Exchange?
- How Do I Complete a 1031 Exchange Application?
- How Do I Choose a Qualified Intermediary for a 1031 Exchange?
- What Type of Property Can I Swap in a 1031 Exchange?
- What Are Some Advantages Provided by a 1031 Exchange?
- How Can I Use a 1031 Exchange to Stop Managing Property?
- How Can I Take Advantage of a 1031 Exchange?
- How Long Do I Have to Complete a 1031 Exchange?
- What Is "Like-Kind" Property in a 1031 Exchange?
- What Is the "Boot" in a 1031 exchange?
- How Do I Fully Defer the Tax on the Sale of My Property through a 1031 Exchange?
- What Is a Delayed 1031 Exchange?
- What Is a Reverse 1031 Exchange?
- Do I Need an Intermediary for a 1031 Exchange?