The 2026 1031 Exchange Checklist
Every step and deadline from listing your property to closing on your replacement — in one checklist. Deadlines in a 1031 exchange are absolute, so the difference between a deferred tax bill and a six-figure one is usually just preparation.
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Before you list your property
2–8 weeks before listing
- ✓Engage a Qualified Intermediary (QI) before closing. This is the one unfixable mistake — if you touch the sale proceeds, even for a day, the exchange is dead.
- ✓Calculate what you need to replace. Note your expected sale price, loan payoff, and equity. To fully defer, you must buy equal-or-greater value AND replace equal-or-greater debt.
- ✓Estimate your deferred tax. Run your numbers through our capital gains tax calculator — knowing the size of the tax bill you're deferring keeps deadlines motivating.
- ✓Talk to your CPA about your adjusted basis, depreciation recapture, and any state filing requirements (California sellers: ask about Form 3840).
- ✓Start a replacement short-list now. The 45-day clock is brutal if you start shopping at closing. Include at least one fallback that can close fast.
Day 0 — closing day
The day your sale closes
- ✓Proceeds go directly to your QI — never to your account.
- ✓Mark your two deadlines. Day 45 (written identification) and day 180 (replacement closing) are calendar days with no extensions. Get your exact dates from our deadline calculator.
- ✓Q4 sellers: your real deadline may be your tax-return due date, not day 180 — file an extension if your 180 days cross April 15.
Days 1–45 — identification window
45 calendar days, no extensions
- ✓Shop hard in the first 30 days. Leave the last two weeks for paperwork, not discovery.
- ✓Deliver written identification to your QI by midnight of day 45. Most investors use the 3-property rule — and you should use all three slots.
- ✓Name a backup that can't fall through. Many exchangers name a DST as property #2 or #3 — it costs nothing to identify, and because DSTs close in days, it can rescue an exchange whose primary property dies in escrow.
- ✓Review the timeline rules — the 3-property, 200%, and 95% identification rules are explained in our 1031 exchange timeline guide.
Days 45–180 — close on your replacement
135 more calendar days, no extensions
- ✓Close before day 180 (or your tax-return due date including extensions, whichever comes first). You can only buy property you identified by day 45.
- ✓Match value and debt to avoid taxable boot — any shortfall in either is taxed.
- ✓If your deal is wobbling, remember DSTs can close in 3–5 business days — even in the final week. See what a DST is and what it takes to invest.
- ✓After closing: your QI releases documentation for your tax return (Form 8824). Keep everything.
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