1031 Exchange Coordination at Closing

Key Takeaways

• The 45-day identification and 180-day completion deadlines are absolute calendar day counts with no extensions.
• The QI must hold exchange proceeds—actual or constructive receipt by the investor disqualifies the exchange.
• Boot (cash or mortgage reduction) triggers taxable gain—replacement property value and mortgage must equal or exceed the relinquished property.
• Exchange cooperation language must be included in both the relinquished and replacement property purchase agreements.