Ultimate 1031 Exchange Timeline

Complete visual timeline of every critical deadline and milestone in your 1031 exchange

1031 Exchange Timeline

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Your Ultimate 1031 Exchange Timeline

Your complete roadmap from planning to completion

Fill in your closing date to calculate all critical deadlines

Day 45 Deadline

Identify Properties

Written to QI by midnight

Day 180 Deadline

Complete Exchange

Or tax return due date (earlier)

1

Pre-Exchange Planning

6-12 Months Before Sale

Key Milestones

  • •Decide to execute a 1031 exchange
  • •Assemble your exchange team
  • •Review property basis and depreciation
  • •Understand IRS requirements and rules
  • •Evaluate replacement property options

Professionals to Engage

  • •Qualified Intermediary (QI)
  • •CPA/Tax Advisor
  • •Real Estate Attorney
  • •Real Estate Broker/Agent

Action Checklist

  • Research and interview Qualified Intermediaries
  • Consult CPA about tax implications and basis
  • Review investment goals and property criteria
  • Begin researching replacement property markets
  • Understand like-kind property requirements

Critical Warnings

  • ⚠Don't wait until last minute to find QI
  • ⚠Ensure property qualifies as investment/business use

Your Notes

2

Pre-Sale Preparation

3-6 Months Before Sale

Key Milestones

  • •Formally engage Qualified Intermediary
  • •List property being sold for sale
  • •Execute Exchange Agreement with QI
  • •Prepare property for market
  • •Begin active replacement property search

Professionals to Engage

  • •Qualified Intermediary (formalize relationship)
  • •Listing Broker
  • •Property Inspector (if needed)

Action Checklist

  • Sign Exchange Agreement with QI BEFORE listing
  • List property being sold
  • Create shortlist of potential replacement properties
  • Understand identification rules (3-property, 200%, 95%)
  • Review timelines with your QI

Critical Warnings

  • ⚠CRITICAL: Engage QI BEFORE closing on property being sold
  • ⚠Never take possession of sale proceeds
  • ⚠Include 1031 language in purchase agreement

Your Notes

3

Accept Offer & Close on Property Sale

DAY 0

Key Milestones

  • •Accept purchase offer (include 1031 language)
  • •Coordinate closing with QI
  • •Close on property being sold
  • •DAY 0 = CLOSING DATE (Exchange Starts!)
  • •QI receives and holds proceeds

Professionals to Engage

  • •Qualified Intermediary
  • •Title/Escrow Company
  • •Real Estate Attorney

Action Checklist

  • Ensure purchase agreement includes 1031 cooperation clause
  • Notify QI of accepted offer immediately
  • Provide QI with escrow/title company contact
  • QI executes assignment documents at closing
  • Confirm QI has received funds (NEVER touch proceeds yourself)

Critical Warnings

  • ⚠NEVER let proceeds come to you - instant disqualification
  • ⚠QI must be involved in closing documents
  • ⚠This closing date = DAY 0 for all deadlines

Your Notes

4

45-Day Identification Period

DAY 1 - DAY 45

Critical Deadline

Key Milestones

  • •Actively search for replacement properties
  • •Tour and evaluate potential properties
  • •Submit written identification to QI by Day 45
  • •Choose identification method (3-property, 200%, or 95%)

Professionals to Engage

  • •Buyer's Real Estate Agent
  • •Qualified Intermediary (receive identification)
  • •Property Inspector/Due Diligence Team

Action Checklist

  • Research replacement properties in target markets
  • Schedule property tours immediately
  • Perform preliminary due diligence
  • Choose identification rule that fits your strategy
  • Submit written identification to QI by midnight Day 45
  • Get QI's written confirmation of receipt

Critical Warnings

  • ⚠DEADLINE IS ABSOLUTE - No extensions for weekends/holidays
  • ⚠Must be in WRITING to your QI
  • ⚠Identification received by QI before midnight Day 45
  • ⚠Cannot identify properties after Day 45 (no exceptions)

Your Notes

Identification Rules Summary

You must follow ONE of these IRS identification rules by Day 45:

3

3-Property Rule

Identify up to 3 properties of any value

Most common rule. Simple and straightforward.

200%

200% Rule

Identify unlimited properties worth ≤ 200% of sold property value

Flexibility for multiple property acquisitions.

95%

95% Rule

Identify unlimited properties, must close on 95% of total identified value

High-stakes flexibility. Must follow through on nearly all.

Remember: You can only use ONE rule per exchange. Choose the rule that best fits your strategy before Day 45.

5

180-Day Exchange Completion Period

DAY 1 - DAY 180

Critical Deadline

Key Milestones

  • •Perform due diligence on identified properties
  • •Secure financing for replacement property
  • •Execute purchase agreement
  • •Close on replacement property(ies)
  • •QI transfers exchange funds at closing
  • •Must close by Day 180 OR tax return deadline (whichever is earlier)

Professionals to Engage

  • •Qualified Intermediary
  • •Buyer's Real Estate Agent
  • •Lender/Mortgage Broker
  • •Title/Escrow Company
  • •Property Inspector

Action Checklist

  • Conduct full due diligence (inspection, appraisal, environmental)
  • Apply for financing immediately
  • Execute purchase agreement with 1031 language
  • Coordinate closing with QI
  • QI executes assignment at closing
  • Confirm QI transfers funds directly to closing
  • Close on or before Day 180

Critical Warnings

  • ⚠DEADLINE IS ABSOLUTE - No extensions
  • ⚠Tax return deadline can shorten 180-day period
  • ⚠Must acquire identified properties only
  • ⚠QI must transfer funds directly to closing

Your Notes

6

Post-Exchange Compliance

Following Tax Year

Key Milestones

  • •File IRS Form 8824 with tax return
  • •Report exchange details to IRS
  • •Maintain records for audit purposes
  • •Hold property for investment (avoid immediate sale)

Professionals to Engage

  • •CPA/Tax Preparer
  • •Qualified Intermediary (final documentation)

Action Checklist

  • Collect all exchange documents from QI
  • Provide documentation to CPA
  • File Form 8824 with tax return
  • Maintain records for minimum 7 years
  • Hold replacement property for investment use

Critical Warnings

  • ⚠Form 8824 is REQUIRED - failure to file can invalidate exchange
  • ⚠Keep detailed records in case of IRS audit
  • ⚠Immediate resale can trigger IRS scrutiny

Your Notes

Additional Resources

Timeline Calculator

Calculate exact deadline dates

Find a QI

Connect with professionals

Educational Articles

Learn more about 1031 exchanges

1031rule.com

Your trusted resource for 1031 exchange guidance

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