How the 1031 exchange deadlines are calculated
Under Treasury Regulation 1.1031(k)-1, the identification period begins on the date you transfer the relinquished property and ends at midnight on the 45th day after that date. The exchange period begins on the same date and ends at midnight on the earlier of the 180th day after the transfer or the due date, including extensions, of your federal income tax return for the year of the transfer. Both periods are measured in calendar days. Weekends and holidays count, and a deadline that falls on a weekend does not move to the next business day.
What to do inside each window
Before day 45
- Tour and underwrite candidate properties. Most investors identify under the three-property rule: one primary target and two realistic backups.
- Confirm financing feasibility on each candidate, especially for NNN properties with short remaining lease terms.
- Deliver a signed, written identification to your qualified intermediary that unambiguously describes each property (street address or legal description).
Between day 45 and day 180
- Go under contract and assign the purchase agreement to your qualified intermediary.
- Complete due diligence, appraisal, environmental review, and loan approval with time to spare. Aim to close at least two weeks before the deadline.
- Have your QI and CPA review the closing statement for items that could create boot, such as prorations or loan costs paid from exchange funds.
Why the tax-return cutoff catches people
If you sell in November or December, your return for that year is due the following April 15, which can arrive before day 180. Unless you file an extension, your exchange period ends on April 15. Filing the extension is simple and restores the full 180 days, but it must be done before the return due date. Read more in our complete guide to 1031 exchanges in New Mexico.
This calculator assumes an individual taxpayer with a calendar tax year and an April 15 return due date. Entity taxpayers (partnerships, S corporations, C corporations) may have different due dates. It does not account for federally declared disaster extensions. It is a planning tool, not a substitute for your qualified intermediary's exchange documents.
