What are the deadlines for a 1031 Deferred Exchange?
The delayed exchange, which became popular after the well-known Starker decision (Starker v. United States, 602 F2d 1341 (1979)), changes made by Congress in 1984, and the 1991 Final Regulations can provide Exchange Parties the opportunity for simple and defensible exchanges. It is essential when using the delayed exchange to adhere to the Section 1031 guidelines. The Section 1031 exchange Begins on the earlier for the following: • The date the deed records, or • The date possession is transferred to the buyer. The exchange Ends on the earlier of the following: • 180 days, or • The date the Exchange Party’s tax return is due, including extensions, for the taxable year in which Relinquished Property is transferred. The Identification Period is the first 45 days of the exchange period. The exchange period is a maximum of 180 days. If the Exchange Party has multiple relinquished properties, the deadlines begin on the transfer date of the first property. These deadlines may not be extended
