The identification period
In a typical delayed exchange involving one or more relinquished properties, you have 45 calendar days after the earliest transfer date to send the appropriate party a signed written notice identifying one or more potential replacement properties.
The exchange period
You must complete your exchange within 180 calendar days after transferring your relinquished property. The 45-day identification period is included within these 180 days. It does not add time to the exchange period.
Planning around your tax return
For a sale later in the year, your tax return due date can arrive before the 180th day. Review filing deadlines and any extension with your tax advisor as part of the exchange plan.
Build a workable acquisition plan
Start replacement property research early, discuss financing, and keep the closing team informed. Certain IRS relief may apply in specific circumstances, but do not assume that a deadline can be extended.
