Important Tax Deadlines for 1031 Exchange Transactions Initiated During the 4th Quarter of 2024

If the sale of your Relinquished Property closed on or between October 18, 2024, and December 31, 2024, the standard 180-day exchange period will be shortened. However, you can file for a tax extension by April 15, 2025, to obtain a full 180-day exchange period. If you do not file for an extension, the last day to close on your Replacement Property(ies) will be April 15, 2025. Internal Revenue Code § 1.1031(k)-1(b)(ii) offers the following explanation: 

“(ii) The exchange period begins on the date the taxpayer transfers the relinquished property and ends at midnight on the earlier of the 180th day thereafter or the due date (including extensions) for the taxpayer’s return of the tax imposed by chapter 1 of subtitle A of the Code for the taxable year in which the transfer of the relinquished property occurs.” 

In simpler terms, the exchange must be completed within 180 days of the sale of the property UNLESS your tax filing deadline (April 15th for most taxpayers) occurs first; in that case, the exchange period will instead expire on April 15th. 

Here’s an example: An investor sells property on December 11, 2024, as part of a 1031 exchange. The 180th day thereafter is June 9, 2025. Unfortunately, the investor does not have until June 9 to complete the 1031 Exchange transaction; the April 15 tax filing deadline occurs before the 180th day of June 9. If, however, the Exchanger requests an extension of time to file their tax return, they will get the benefit of a full 180-day exchange period. You can find the guidelines on filing for an extension here. 

If your relinquished property closed between October 18 and December 31 of 2024, don’t miss out on your full 180-day exchange period. Make sure you file for an extension on or before April 15, 2025. As always, be sure to consult with your tax advisor and attorney on this and other 1031 Exchange-related transactions. 

Please speak with your tax advisor and contact one of our 1031 exchange experts for more details. 

If you or someone you know has questions about the 1031 exchange process, we at Peak 1031 Exchange are your qualified experts who are here to help. Contact us today at team@peakexchange.com or by calling us at 866-357-1031 to discuss the deferral of capital gains taxes with a 1031 exchange. 

Have Questions?



Peak 1031 Exchange uses cookies to enhance your browsing experience and the services we provide to you. By using our website and services, you are agreeing to the use of these cookies. For more information, please view our Privacy Policy here.