Timeline for an exchange

In all safe-harbor exchanges, regardless of whether they are forward, reverse, build-to-suit, or improvement exchanges, there is a fixed time limit of 180 days. This time period commences when the relinquished property is sold in a forward exchange, and the Qualified Intermediary (QI) holds the proceeds from the sale. Within this 180-day timeframe, a taxpayer must take two key steps in the exchange process: Identification of Replacement Property: Within the first 45 days following the transfer of the relinquished property, the taxpayer must either acquire or formally identify the target replacement property. The identification of the replacement property must be documented in writing, providing a clear description, and the taxpayer must sign it. Additionally, this document must be received by the qualified intermediary on or before the 45th day. Once the taxpayer has successfully identified the replacement property within this window, they have the remainder of the 180 days