Timing Rules of a 1031 Exchange

Timing Rules of a 1031 Exchange

When you’re doing a 1031 exchange of real estate, timing is everything. There are specific deadlines you have to abide by, and if you fail to do so, your exchange may be unsuccessful. In this article, we are going to offer a brief refresher on the timing rules associated with a 1031 exchange of real estate.

Basic Time Frames

First and foremost, there are some basic deadlines you need to be aware of in any 1031 exchange. You have a total of 180 days to finish your exchange (starting when you sell your relinquished property). Those first 45 days are your identification period, in which you need to identify in writing the replacement properties you wish to exchange into.

Exceptions to the Rule

While these time periods are pretty steadfast, there are some situations in which circumstances change. The IRS wants you to report your replacement property on the same tax return as your relinquished property. So depending on when you begin your 1031 exchange, you may only have until your federal tax filing deadline to complete your exchange.

Like-Kind Exchange Services

At Commercial Partners Exchange Company, we provide like-kind exchange services to clients in Minnesota and across the country. It doesn’t matter if you’re a huge investor, or you’ve never sold real estate before in your life – a 1031 exchange can help you defer capital gains taxes when you sell real property. Our qualified intermediaries have over two decades of experience and can help facilitate your like-kind exchange under section 1031 of the Internal Revenue Code. Contact us today to set up a time to chat with one of our qualified intermediaries about your 1031 real estate exchange.

  • 1031 Hotline: If you have questions about 1031 exchange timing rules, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.


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