Guidelines Continued
- Timeline
The IRS provides a maximum of 180 days to complete an exchange. The timeline begins upon the close of escrow (COE) of the relinquished property. The replacement property (or properties) must be acquired on or before midnight of the 180th day. No Exceptions! In addition the IRS requires that all potential replacement property be identified by midnight of the 45th day.
If the replacement property (or properties) can not be acquired on or before day 180, the exchange will fail and taxes must be paid.
Proper planning is essential for a successful exchange.
