1031 Exchange Rules & Deadlines

To perform a 1031 Exchange, investors need to be aware of 3 major dates/deadlines.

1. The Sale Date
2. 45 Day Identification Period
3. 180 Day Exchange Period

The Sale Date

Knowing which day you’ve sold your property is the first crucial date to keep in mind when wanting to perform a 1031 Exchange, because this date triggers the main two 1031 Exchange deadlines.

45 Day Identification Period

Investors have 45 calendar days from the date their property was sold to find a replacement property.

Some important notes to keep in mind — The replacement property’s value must be equal to or greater than the one that was sold, and the amount of debt must also be equal to or greater than the sold property’s debt.

For instance, if you’re an investor who sold a property for $5,000,000 and had $2,000,000 in debt, you would need to buy a new property valued at least $5,000,000 and have at least $2,000,000 in debt.

As an investor, you can “identify” up to 3 replacement properties during this 45-day identification period to potentially buy, as long as you end up closing on one of them.

Replacement properties need to be formally identified by a Qualified Intermediary, who assists with the transaction.

180 Day Exchange Period

Investors have 180 days from their original sale date to close on the purchase of their replacement property, known as an “upleg” property.

Remember, since this clock begins ticking once you’ve closed on your “downleg” property, the 180 Day Exchange Period deadline runs concurrently with the 45 Day Identification Period.

Did you know?

Progress Realty Partners can accept 1031 Exchange money as participation in any of our direct investment offerings. Call or email us with any questions on how to get involved!