Texas 1031 Qualified Intermediary · Midland & Dallas
Texas 1031 Qualified Intermediary · Midland & Dallas
Missing a 1031 deadline is the most common way exchanges fail, and the IRS almost never extends them. Here is how the timeline works, step by step.
The clock hasn’t started yet, but this step can’t wait. The exchange agreement with your QI has to be signed and assigned into the sale contract before the relinquished property closes. Once you have the proceeds, it’s too late.
Net proceeds are wired to 1031 Ventures and held in a qualified escrow account. The 45-day and 180-day periods both start the day after closing.
By midnight of day 45, you must identify potential replacement properties in a signed, written document delivered to your QI. Describe each property clearly, by street address or legal description, or by lease, unit and county for mineral interests. You can identify up to three properties of any value, or more under the 200% or 95% rules. See the identification rules.
Any property you close on within the first 45 days counts as identified.
You must close on the replacement property by day 180. Because both periods run at the same time, you only have 135 days left once the identification window closes.
Watch the tax return trap: the exchange period ends on day 180 or on the due date of your tax return for the year of the sale, whichever comes first. If you sell late in the year, for example in November, file an extension so you keep the full 180 days.
| Milestone | When | What happens |
|---|---|---|
| Engage the QI | Before the sale closes | Exchange agreement signed, sale contract assigned |
| Sale closes | Day 0 | Proceeds wired to the qualified escrow account |
| Identification deadline | Day 45 | Written identification delivered to the QI |
| Exchange deadline | Day 180, or the tax return due date if earlier | Replacement property closed, funds wired by the QI |
| Report the exchange | With your tax return | File IRS Form 8824 |
No. Both deadlines are calendar days. If day 45 falls on a Sunday, the deadline is that Sunday. The only extensions are for federally declared disasters, when the IRS issues specific relief.
If you identify nothing by day 45, or can’t close by day 180, the exchange fails and the sale is taxed normally. Depending on timing, the funds may stay restricted until the exchange period ends. If a deal looks shaky, talk with us early. Identifying backup properties is the best insurance.
Every 1031 Ventures client gets a written deadline schedule at closing. Start an exchange or call 432-934-1479.
Call before your sale closes. A qualified intermediary has to be in place first.
General information only, not tax or legal advice.
Qualified intermediary for 1031 exchanges of investment real estate, land, and oil, gas & mineral interests. Exchange funds are held in a qualified escrow account at a federally insured bank.
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