1031 Exchange Deadline
1031 exchange: 45 days to identify replacement, 180 days to close. Miss either = full tax on sale gain. Use qualified intermediary.
| Sale date | — |
| Identify by | — |
| Close by | — |
| Days to ID | — |
| Days to close | — |
| Gain on sale | — |
| Combined tax rate | — |
| Tax deferred via 1031 | — |
Section 1031 like-kind exchanges defer capital gains tax on investment property sales — IF you meet two strict deadlines: identify replacement property within 45 days AND close on it within 180 days. Both deadlines are FIRM with no extensions.
The Two Deadlines
45-DAY ID Rule: written identification of replacement property to qualified intermediary. Three-property rule (identify 3 max) or 200% rule (identify any number, total <200% of sold value). 180-DAY Close Rule: complete acquisition. Both run concurrently from sale date.
Qualified Intermediary Required
You CANNOT touch the proceeds — must go to a Qualified Intermediary (QI). QI holds funds and acquires replacement property. Tax law specifically requires this. Fees: $750-$2,500 typical. Reputable QIs: First American, Investors Title, ExpressTrust.
Boot and Mortgage Boot
Cash 'boot' received = taxable. Mortgage boot: new loan smaller than old loan = taxable difference. To fully defer: replacement property value ≥ sold property; new loan ≥ old loan; all cash invested. Otherwise partial recognition.
Last updated May 2026. Sources: IRS Section 1031.