How the 180-day window works
The 180-day clock starts the day after closing on the relinquished property and runs concurrently with the 45-day identification period. You must close on identified replacement property by the earlier of: (1) 180 calendar days after sale, or (2) the due date (including extensions) of your federal tax return for the year of the sale.
Tax return interaction
Investors who sell late in the year may need to file a tax extension to preserve the full 180 days. Coordinate with your CPA early in the process.
Common scheduling tips
- Begin replacement-property due diligence before you close on the sale.
- Calendar both the 45-day and 180-day deadlines, plus internal milestones at 30, 60, and 120 days.
- Coordinate with your Qualified Intermediary, CPA, and attorney early.