--- title: What Is The Waiting Period Of A 1031 Exchange? description: Learn more about the waiting period for a 1031 exchange. image: https://www.realized1031.com/hubfs/iStock-1414348038-modified-7f18df04-f5f1-4db9-942c-f9a4cb202ea6.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What Is The Waiting Period Of A 1031 Exchange? Posted Feb 8, 2025 ![iS-1414348038](https://www.realized1031.com/hs-fs/hubfs/iStock-1414348038-modified-7f18df04-f5f1-4db9-942c-f9a4cb202ea6.jpg?width=1258&height=707&name=iStock-1414348038-modified-7f18df04-f5f1-4db9-942c-f9a4cb202ea6.jpg) A 1031 exchange can be a powerful tool for investors who want to postpone paying capital gains and depreciation recapture taxes on the sale of investment real estate. However, a successful like-kind exchange requires following stringent deadlines to avoid triggering a taxable event. Understanding the timing involved is essential to ensure a successful exchange. The Two Specific Deadlines The IRS has in place two definite time limits for a valid 1031 exchange: *#1—The 45-Day Identification Period* The goal of a successful 1031 exchange is to “trade” real property you own (“relinquished” property) into real estate you want to buy (“replacement” property) while deferring capital gains taxes. The IRS gives you a brief window to find that replacement property. Specifically, you have 45 days from when you sell the relinquished property to identify replacement properties under one of the following rules: The three-property rule allows you to identify up to three replacement properties. The 200% rule allows you to identify multiple replacement properties as long as the value of those properties doesn’t exceed 200% of your relinquished property’s value. The 90% rule allows you to target multiple replacement properties as long as those are equal to or greater than 90% of your relinquished property’s sale price. Regardless of the rule you use, you must identify and put in writing the replacement assets to a qualified intermediary (QI) for a like-kind exchange to be valid. *#2—The 180-Day Completion Period* The other deadline for a successful like-kind exchange is that you must buy the replacement property or properties within 180 days of selling your relinquished property. In other words, you have 180 days to negotiate with the seller, perform due diligence, obtain the necessary entitlements and documents, commence the necessary inspections, and close on the property. Failure to reach the closing table by day 180 means the exchange becomes invalid. The other issue is that the above timelines represent “calendar” deadlines. Whether the deadlines fall on a weekend or during a holiday doesn't matter. According to the IRS, you must meet these deadlines to avoid invalidating the transactions. Strategies to Meet the Deadlines When embarking on a 1031 exchange, these deadlines can arrive quickly, especially if you’re unprepared. Consider the following to help ensure that you’re able to meet the mandated deadlines: - *Select your Qualified Intermediary (QI) early on*. You must work with a QI for a successful like-kind exchange. This is an IRS rule. Furthermore, an experienced QI can guide you through the process, helping you remain on track. - *Put together the rest of the team*. Before you put the relinquished property on the market, bring together the other professionals you’ll need. These should be 1031 exchange experts and might include a property broker, attorney, and tax advisor. - *Identify replacement properties as soon as possible*. Don’t wait until you close the relinquished property before you target replacement real estate. Start exploring options at once. - *Be precise with paperwork*. Forms and contracts are part of a 1031 exchange. Make sure everything is completed per instructions to avoid potential problems—and time delays—down the road.  Keep an Eye on the Calendar A 1031 exchange is void if you fail to follow the deadlines. This, in turn, can mean unexpected expenses when tax time comes around. However, with proper planning and execution—and a knowledgeable team on your side—you could benefit from a powerful tax-deferral tool and remain compliant with IRS regulations. Download The Guide To 1031 Exchange [![The 1031 Investor's Guidebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/1031-Exchange-eBook-250.png?width=250&height=250&name=1031-Exchange-eBook-250.png "Tackle the art and science of ...") ](https://www.realized1031.com/blog/what-is-the-waiting-period-of-a-1031-exchange#blogform) Download eBook ---   --- ### The 1031 Investor's Guidebook ![Download The Guide To 1031 Exchange](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/1031-Exchange-eBook-550.jpg?width=550&height=650&name=1031-Exchange-eBook-550.jpg) Tackle the art and science of completing your 1031 exchange. By providing your email and phone number, you are opting to receive communications from Realized. 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Understanding the timing involved is essential to ensure a successful exchange. The Two Specific Deadlines The IRS has in place two definite time limits for a valid 1031 exchange: #1—The 45-Day Identification Period The goal of a successful 1031 exchange is to “trade” real property you own (“relinquished” property) into real estate you want to buy (“replacement” property) while deferring capital gains taxes. The IRS gives you a brief window to find that replacement property. Specifically, you have 45 days from when you sell the relinquished property to identify replacement properties under one of the following rules: The three-property rule allows you to identify up to three replacement properties. The 200% rule allows you to identify multiple replacement properties as long as the value of those properties doesn’t exceed 200% of your relinquished property’s value. The 90% rule allows you to target multiple replacement properties as long as those are equal to or greater than 90% of your relinquished property’s sale price. Regardless of the rule you use, you must identify and put in writing the replacement assets to a qualified intermediary (QI) for a like-kind exchange to be valid. #2—The 180-Day Completion Period The other deadline for a successful like-kind exchange is that you must buy the replacement property or properties within 180 days of selling your relinquished property. In other words, you have 180 days to negotiate with the seller, perform due diligence, obtain the necessary entitlements and documents, commence the necessary inspections, and close on the property. Failure to reach the closing table by day 180 means the exchange becomes invalid. The other issue is that the above timelines represent “calendar” deadlines. Whether the deadlines fall on a weekend or during a holiday doesn't matter. According to the IRS, you must meet these deadlines to avoid invalidating the transactions. Strategies to Meet the Deadlines When embarking on a 1031 exchange, these deadlines can arrive quickly, especially if you’re unprepared. Consider the following to help ensure that you’re able to meet the mandated deadlines: Select your Qualified Intermediary (QI) early on. You must work with a QI for a successful like-kind exchange. This is an IRS rule. Furthermore, an experienced QI can guide you through the process, helping you remain on track. Put together the rest of the team. Before you put the relinquished property on the market, bring together the other professionals you’ll need. These should be 1031 exchange experts and might include a property broker, attorney, and tax advisor. Identify replacement properties as soon as possible. Don’t wait until you close the relinquished property before you target replacement real estate. Start exploring options at once. Be precise with paperwork. Forms and contracts are part of a 1031 exchange. Make sure everything is completed per instructions to avoid potential problems—and time delays—down the road. Keep an Eye on the Calendar A 1031 exchange is void if you fail to follow the deadlines. This, in turn, can mean unexpected expenses when tax time comes around. However, with proper planning and execution—and a knowledgeable team on your side—you could benefit from a powerful tax-deferral tool and remain compliant with IRS regulations.", "articleSection" : [ "1031 Exchange" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2025-02-08T15:00:01+0000", "datePublished" : "2025-02-08T15:00:01+0000", "description" : "Learn more about the waiting period for a 1031 exchange.", "headline" : "What Is The Waiting Period Of A 1031 Exchange?", "image" : { "@type" : "ImageObject", "height" : 707, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-1414348038-modified-7f18df04-f5f1-4db9-942c-f9a4cb202ea6.jpg", "width" : 1258 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/what-is-the-waiting-period-of-a-1031-exchange", "name" : "What Is The Waiting Period Of A 1031 Exchange?", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-1414348038-modified-7f18df04-f5f1-4db9-942c-f9a4cb202ea6.jpg" } ```