Rules & deadlines
1031 exchange deadlines: the 45-day and 180-day rules
Every delayed 1031 exchange runs on two strict clocks that both start the day your relinquished property closes. They run at the same time, not back to back, and outside of a federally declared disaster there are no extensions, grace periods, or exceptions.
The 45-day identification period
Within 45 calendar days of your sale, you must identify your replacement property in writing, signed and delivered to your Qualified Intermediary (or another party to the exchange). Telling only your own agent, attorney, or accountant does not count. Weekends and holidays are included; the clock does not pause.
Most investors use one of three identification rules:
- Three-property rule: identify up to three properties of any value. Most people use this and name more than one in case a deal falls through.
- 200% rule: identify any number of properties as long as their combined value does not exceed 200% of what you sold.
- 95% rule: identify more than the above allows, but you must actually acquire at least 95% of the total value identified.
The 180-day completion period
You must close on your replacement property within 180 calendar days of the sale, or by your tax-return due date (including extensions) for that year, whichever comes first. The 45 days are part of the 180, not added to it.
What happens if you miss a deadline
If you miss either deadline, the exchange fails automatically. There is no partial credit and no way to cure it. Your QI returns the funds, and the original sale becomes a fully taxable event, meaning you owe capital gains tax plus depreciation recapture (and any state tax).
This is exactly why the 45-day identification window is so stressful, and why many investors line up backup options early. If you are worried about finding a property in time, a passive replacement (a DST) can serve as an identified backup.
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Frequently asked questions
- Can I get an extension on the 45 or 180 days?
- No. The IRS grants no extensions except when formal relief is issued for a federally declared disaster or emergency. Weekends and holidays do not extend the deadline.
- How many properties can I identify?
- Up to three of any value under the three-property rule, or more under the 200% rule (total value under 200% of what you sold) or the rarely used 95% rule.
- When does the clock start?
- On the day your relinquished (sold) property closes. Both the 45-day and 180-day periods begin that day and run concurrently.
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Educational information only, not tax, legal, or investment advice. 1031 rules and deadlines are strict and can change, so confirm with the IRS and your own CPA or attorney before acting. How we source content.