Some of the most common questions we get from clients are regarding 1031 exchange identification periods. We've explained many times that you have 180 days total to complete your 1031 exchange, and the first 45 days of that is your identification period. But not all situations are that cut and dry. In this article, we're going to take a look at a 1031 exchange example that will answer the question: can you extend the 45 day identification period if it ends on a weekend?
1031 Exchange Example
Consider the following 1031 exchange scenario: A taxpayer sells their relinquished property on December 28, 2016. The 45-day identification period therefore expires on Saturday, February 11. Given that February 11 falls on a weekend, does the taxpayer have until the next business day, Monday, February 13, to identity replacement property, or must they do so by midnight, Feb 11?
1031 Deadlines are Set in Stone
This is an excellent and common question. The simple answer is no. There is not a roll-over to the next business day when it comes to the 1031 exchange deadlines. The 45th day and 180th day are set in stone deadlines. There are no possible extensions.
- 1031 Hotline: If you have questions about 1031 identification periods, feel free to call me at 612-643-1031.
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