The 180-day exchange period is the second federal deadline in a 1031 exchange. You must receive your replacement property by the earlier of the 180th day after your sale closes or the due date of your federal tax return for the year of the sale, including extensions. The two periods run at the same time, so the 45 days are part of the 180, not added to them.
Key Points
- Tax return due date: For calendar-year individuals, a sale that closes in mid-October or later has a 180th day that falls after the April 15 return due date. Unless you file an extension, the exchange period ends on the due date instead, which can cost you weeks. An extension, filed on time, generally restores the full 180 days.
- No weekend extensions: Both periods are counted in calendar days, and a deadline that lands on a weekend or holiday stays where it is. The main exception is relief the IRS announces for taxpayers affected by a federally declared disaster.
- More than one property sold: When an exchange includes more than one relinquished property, both periods start on the date the first property transfers.
Your tax advisor can confirm the right approach for your return. To learn more, find your 1031 exchange deadlines.
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