What If You Miss the Deadline? 1031 Exchange Timing Explained

In a 1031 exchange, timing is everything — and missing a deadline can turn a tax-deferred opportunity into a taxable event.

Here’s what investors need to know:

⏱ The 45-Day Rule

You have 45 calendar days from the sale of your original property to identify potential replacement properties in writing. This deadline is not flexible — if you miss it, the IRS considers the exchange failed, and your capital gains will likely be taxable.

📆 The 180-Day Rule

You must close on one or more of the identified replacement properties within 180 days of the original sale date. Again, this is a hard deadline. No extensions. If you miss it, you lose the deferral benefit.

🔁 What Happens If You Miss Either Deadline?

Missing either the 45-day or 180-day window means your exchange is disqualified, and the sale will be treated as a traditional transaction — with capital gains taxes due for that tax year.

💡 Pro Tip:

Work with a qualified intermediary early and keep your Realtor and CPA in the loop to avoid costly missteps.

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Conclusion:
1031 exchanges are a powerful strategy — but one missed deadline can undo it all. Always plan ahead and stay organized.