Rules of 1031 Exchange

When you are selling your first property, you have exactly 45 days from the day of sale in which to identify the replacement property you intend to buy. This timeline is known as the "Identification Period". This is a mandatory time limit, and cannot be exceeded or extended under any circumstances, regardless of day of the week or holidays.

In exactly 180 days after the sale of the initial property, the IRS requires that the seller must RECEIVE the secondary purchase of property. Known as the "Exchange Period", again, the timeline cannot be exceeded or extended in any circumstance. If the owner's tax return becomes due before this full 180 days, the exchange period then ends at that tax return due-date.