Assemble the exchange team
Engage a qualified intermediary before closing. Confirm title and taxpayer identity, estimate sale proceeds and debt payoff, and begin comparing replacement options with tax, legal, and investment advisers.
1031 exchange timeline
The deadline does not wait for the investment decision.
Day 0, Day 45, and Day 180 are connected. Build the team, financing plan, and replacement-property shortlist before the sale closes.
The relinquished property transfers
The buyer sends proceeds to the qualified intermediary. The 45-day identification period and 180-day exchange period begin at the same time.
Identify replacement property in writing
The identification must clearly describe the replacement property, be signed, and be delivered to a permitted exchange party on time. A late or informal list is not a substitute for a compliant identification.
Receive the replacement property
Close by the earlier of the 180th calendar day or the federal tax-return due date, including extensions, for the year of the sale. Financing and diligence need to fit inside that window.
A practical pre-closing checklist
Write down these facts before the clock starts.
- Expected sale price and closing date
- Adjusted tax basis and estimated gain
- Debt payoff and expected net proceeds
- Replacement value and debt requirement
- Qualified intermediary and exchange agreement
- Replacement-property shortlist, backup options, and financing path
Source
IRS Instructions for Form 8824 ↗Special relief can apply in limited circumstances, including certain federally declared disasters. Do not assume a deadline is extended without transaction-specific confirmation.
Before the sale closes
Do not let Day 45 become the first day you compare properties.
Share your expected sale price and remaining debt. We will help organize the questions to take to your qualified intermediary, tax adviser, and investment team.