What is the timeline for a 1031 exchange?
The 1031 exchange timeline begins as soon as the relinquished property is sold. Investors must adhere to strict deadlines to qualify for tax deferral:
- 45 days: The investor must identify potential replacement properties within 45 days of the sale.
- 180 days: The investor must close on a replacement property within 180 days of selling the relinquished property.

Both deadlines run simultaneously from the closing date of the relinquished property. Missing either deadline can result in disqualification from 1031 tax benefits.