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Both of these deadlines are hard deadlines. The IRS does not give extensions on these deadlines, save for the occurrence of Presidentially declared natural disasters. But, there is a circumstance wherein you can trip these deadlines to expire early. If your relinquished property was transferred before October 17th, the 180 days would end before the due date of your tax return, April 15th. The 180thday would be the deadline to receive all replacement property. If your relinquished property was transferred after October 17th but before the end of the year, your income tax return would be due April 15th. This date is the deadline for receiving all replacement property, even though it is less than the 180 days. If your exchange falls in this category and you want to have the full 180 days, you may request an automatic extension of time to file your return. An extension must be filed in order to receive the full 180 days. If you file your tax return before April 15th, you may trip the 1031 Exchange deadlines, thus ending your 1031 exchange on the day you file.
NOTE: If the Exchanger is a partnership, trust, or corporation, it is important to know the due date for tax returns for that entity, so an extension can be requested if necessary.
In any event, you cannot file an accurate tax return until after you close on all replacement property because you will not have all the necessary information needed to complete your return. So, particularly during the this time of year, please keep your 1031 Exchange, and its deadlines, in mind, when considering your entire tax situation and the income tax filing process.
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