1031 Exchange Deadlines: 45 Days and 180 Days Explained

A 1031 exchange can help you defer capital gains taxes by reinvesting the proceeds from a property sale into another like-kind property. While the benefits are significant, meeting the IRS deadlines can be stressful. That’s where a Delaware Statutory Trust (DST) can make the process much simpler.

Key Deadlines You Need to Know:

45 Days to Identify Replacement Properties: After selling your property, you have 45 days to provide a written list of potential replacement properties. Choose from:

• Three Property Rule (up to three properties, any value)

• 200% Rule (any number of properties, total not exceeding 200% of the sold property’s value)

• 95% Rule (identify more than three properties and acquire at least 95% of total value)

Important: This timeline is strict. The deadline applies even on holidays or weekends.

180 Days to Close the Exchange

You must complete your purchase of a replacement property within 180 calendar days of your sale. This 180-day period includes the initial 45-day identification window. No extensions are allowed except in rare cases tied to federally declared disaster areas.

Why Choose a DST for Your Exchange?

A DST offers a smoother path to meeting these deadlines while providing attractive financial benefits:

• Ease and Simplicity: DST properties are pre-structured and ready to accept your 1031 funds, saving you time and reducing stress.

• Passive Income: Earn predictable income without the hassle of property management. DSTs often invest in stable, triple-net lease properties with high-credit tenants.

• Tax Deferral Benefits: Defer capital gains taxes under IRS 1031 guidelines while benefiting from a professionally managed real estate portfolio.

• Diversification: Spread your investment across multiple properties and markets with ease, even with smaller investment amounts.

Medalist Holdings Makes It Simple

With Medalist, you gain expert guidance to make your 1031 exchange seamless and effective. Our team specializes in Delaware Statutory Trusts (DSTs) and offers properties designed to meet IRS tax deferral requirements while offering valuable benefits like:

• Tax-deferred entry

• Reliable income streams

• Optional 721 UPREIT conversion for estate planning

We focus on simplifying the complex while helping you preserve your wealth through smart real estate investments.

Don’t Miss Out

The 45-day and 180-day deadlines are firm. Missing them can mean losing your ability to defer taxes, resulting in:

• Immediate capital gains taxes

• Depreciation recapture

• Potential losses to state income taxes

Don’t take the risk. If you’re preparing for a sale or are already in escrow, now is the time to act.

Contact Medalist today to learn how a DST can help you meet your 1031 exchange deadlines without stress.