If you’re thinking about completing a 1031 exchange for investment or business real estate, you should have a thorough understanding of all the deadlines involved. Failing to meet even one can jeopardize the tax-deferred nature of your transactions.
The good news is there are really only two key deadlines to keep in mind, and compliance is not complicated. It does, however, require due diligence and careful counting of calendar days.
- You must identify or receive your replacement property within 45 days of transferring legal ownership of your relinquished property
- You must receive title to your replacement property within 180 days of transferring legal ownership of your relinquished property
Your qualified intermediary should be helping you manage these deadlines, but ultimately the responsibility falls on the investor to ensure all deadlines are met.