1031 Exchange for Real Estate

This is a summary of the timelines for a 1031 Exchange or known as a Tax Deferred Exchange for Commercial Real Estate. The first period is the identification period in which the party selling real estate must identify a replacement property within a specific period of time in which they want to purchase the property. The buyer with the 1031 exchange can identify more than one property.

  • Time period to identify the replacement real estate is 45 days
  • Time period cannot be extended  regardless of what day the 45th day falls on

1031 Exchange period

This is the period in which the buyer of the real estate has sold their property and takes possession of the replacement real estate. Under IRS rules, this is known as the exchange period. Below is based on whichever period comes first.

  • Exchange period is 180 days
  • 180 days after the person doing the 1031 exchange transfers the property or..
  • 180 days after the due date in which year the person has completed the transfer of the relinquished property
  • 180 day 1031 Exchange period is not extendable under any circumstances not dependent on what day of the week the 180th day falls

It is always suggested by Shire Commercial for any type of 1031 Exchange you seek the advise of a commercial real estate attorney or tax based specialist to make sure you adhere to the IRS rules, Shire Commercial cannot be held liable for any misrepresentations or mistakes in this blog article regarding a 1031exchange for real estate.  More about  potential warehouse properties for investment.