09/09/2026
What happens if you can't find a suitable replacement property within the strict 1031 exchange timeline? Failure to identify a qualifying property within 45 days, or to close on it within the 180-day exchange period, results in the exchange being invalidated. This means the capital gains from the sale of your relinquished property become fully taxable in the current year, potentially leading to a significant tax liability. This outcome underscores why proactive planning, thorough market research, and working with experienced professionals are critical steps for investors engaged in a 1031 exchange. Understanding these risks is essential for making informed decisions.
https://hughes-commercial.com