Definition
You have 180 days from the sale closing date to purchase and close on replacement property, or the 1031 exchange fails. This deadline is absolute.
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Find my pathAbout this term
After sale closing, the investor has 180 days (roughly 6 months) to purchase and close on replacement property. This starts on the same date as the sale closing. The 180-day rule is absolute; extensions are not available. Missing either the 45-day or 180-day deadline forfeits all tax benefits.
Pro Tip
Have financing pre-approved and be ready to move quickly. Missing the 180-day deadline forfeits all tax benefits.
Example
Property sells on January 1; replacement property must be closed by approximately June 30 (180 days later)