Section 1031 and its time restrictions

Section 1031 exchanges do not come without a time limit, there are definite limits to this type of exchange. For instance the tax payer has only 45 days in order to find themselves a new property once they have relinquished theirs. At the 45 day limit he or she will have to identify the property that they are wanting to acquire.

Another deadline that there is, is the 180 days in which the parties have to complete the entire exchange transaction. This deadline starts when the first property is relinquished or when the tax payer federal tax return is due. It comes down to whichever date comes first that particular year.