Real Estate

1031 Exchange Timeline Tracker

A 1031 exchange lets you defer capital gains tax by reinvesting in a like-kind property. The IRS gives you exactly 45 days to identify replacement properties and 180 days to close. Missing either deadline disqualifies the entire exchange.

Sale Closing Date

Day 0 — Sale Closes

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Clock starts. Funds must go to a Qualified Intermediary (QI) — not to you directly.

Day 45 — Identification Deadline

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Must identify up to 3 replacement properties in writing to your QI.

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Day 180 — Exchange Deadline

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Must close on one or more identified replacement properties by this date.

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Key 1031 Rules

1Qualified Intermediary required — funds cannot pass through your hands or the exchange is disqualified.

23-Property Rule: identify up to 3 properties of any value, OR unlimited properties whose total value doesn't exceed 200% of the relinquished property's value.

3Like-kind means real property for real property (US only). Residential, commercial, and land all qualify.

4Must be held for investment or business use — primary residences don't qualify (use Section 121 exclusion instead).

5To fully defer tax, buy equal or greater value and reinvest all net proceeds. Any "boot" received is taxable.