What are the time requirements for an exchange?
IDENTIFICATION PERIOD: Replacement property (the new property being purchased) must be identified in writing within 45 days of the transfer of the property being sold. EXCHANGE PERIOD: Replacement property must be purchased within 180 days of the transfer of the property being sold. Filing your tax return closes your exchange! If your tax return becomes due before you can purchase replacement property you must file for an extension to give yourself time to complete the exchange before filing your return. There are no extensions to the time requirements. Weekends and holidays count the same as business days. Family illness or other extenuating personal circumstances are not considered. The 45 and 180 day requirements are fixed, UNLESS there is a national or regional disaster. The President of the United States and the IRS have in recent years granted extensions for circumstances such as 911 and the Katrina flooding.
