What are the Time Requirements Involved in a 1031 Exchange? by Kevin Sanz, CCIM, MSIRE

Posted on August 18, 2021

A 1031 exchange allows investors to postpone the payment of taxes on gains resulting from the sale of a commercial property when they reinvest those sales proceeds into the acquisition of a similar, like-kind property. However, to yield this tax benefit, commercial property owners must abide by very specific restriction on the timing of the exchange.

Investors have 45 days from the date of a commercial property sale to identify a potential replacement property and a total of 180 days from that closing to acquire the replacement property. It is not uncommon for investors to identify more than one property within the 45 days period and close on one or all of them within the 180-day period.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.