The 180-day rule in a 1031 exchange

When does the 180-day period start and end?

The exchange period generally begins on the date you transfer the relinquished property — usually the closing date — and ends 180 calendar days later. Like the 45-day period, it is counted in calendar days and does not move for weekends or holidays.

The 180-day period runs at the same time as the 45-day identification period, not after it. Identifying on day 45 leaves you 135 days to close — not another 180.

Why your real deadline can be earlier than day 180

The exchange period generally ends on the earlier of two dates: 180 days after the transfer, or the due date (including extensions) of your tax return for the year of the transfer.

For sales late in the calendar year this matters a great deal. Sell in November without a filed extension, and your exchange period can end at the return due date — well before day 180. Many investors in this position file an extension to preserve the full period; confirm the approach with your tax professional.

How to plan a closing that fits

Financing, inspections, estoppels and title work all consume calendar. Investors who leave acquisition diligence until after identification often find the last 30 days uncomfortably tight.

• ·Work backwards from your completion date, not forwards from today.
• ·Discuss a return extension with your tax professional for late-year transfers.
• ·Line up lender timelines before identifying, not after.
• ·Treat day 150 as your practical last safe closing window, not day 180.

Frequently asked

Do the 45-day and 180-day periods run at the same time?

Yes. Both periods start on the same transfer date, so the 45-day identification period sits inside the 180-day exchange period — they are not added together. You do not get 225 days.

Can the 180-day deadline be extended?

There is no general extension of the exchange period itself. Filing a tax return extension can preserve the full 180 days for late-year transfers by moving the return due date, and limited relief has applied in some federally declared disasters. Confirm with a qualified tax professional.

What happens if I miss the 180-day deadline?

Replacement property acquired after the exchange period ends generally does not qualify for deferral, and the exchange typically fails in whole or in part. Confirm the consequences for your facts with a tax professional.

Can I close on a property I didn't identify?

Generally no — you can usually only acquire property that was properly identified within the 45-day identification period. That is why many investors identify more than one candidate.