When you’re doing a 1031 exchange (whether it’s a forward exchange or reverse exchange) there are some crucial time frames that you need to be aware of. If you don’t follow the requirements of these deadlines, your exchange will fail, so it’s important to keep these in mind during any exchange.
If you have questions about essential deadlines in your 1031 exchange, contact us today. Our Rochester 1031 intermediaries have been helping taxpayers with their 1031 exchanges for decades. Give us a call today to talk about how a like-kind exchange can save you money by deferring your capital gains tax – 877.373.1031.
45 Day & 180 Day Deadlines
There are two big deadlines that are extremely important in any 1031 exchange:
- 45 Day Identification Period
- 180 Day Exchange Period
First, you have 180 days in total for the entirety of your exchange. This clock starts ticking on the day after you close on the sale of your relinquished property. During the first 45 days of your exchange period, you must designate in writing the replacement property or properties that you intend to exchange into. These two periods run concurrently, meaning the identification period is the first 45 days of the 180 days total you have for your exchange (you don’t add them together).
For help determining your specific 45 day and 180 day deadlines check out our 1031 exchange calculator.
Rochester 1031 Exchange Company
Many taxpayers have had their 1031 exchanges fail because they didn’t abide by these deadlines. The IRS is very strict about these time frames and you have to take them seriously to ensure a successful exchange. This is why many people hire a qualified intermediary to facilitate their exchange. An intermediary can make sure you are abiding by all the regulations and requirements of a 1031 exchange, and ensure that you meet these essential deadlines.
If you are considering a 1031 property exchange in the Rochester area, we are here to help. Our Minnesota intermediaries have over two decades of experience assisting people in their exchanges. Contact us today to get your exchange started – 877.373.1031.