1031 Tax Filing Requirements: The “Due Date of the Return” Rule That Can Shorten Your 180 Days

If you sold late in 2025 and you’re still shopping for replacement property, your exchange deadline may be earlier than you think, unless you extend your return.

When you start a delayed 1031 exchange, the replacement-property deadline is not just “180 days.” The IRS timing rule is: you must receive the replacement property by the earlier of (1) 180 days after the sale, or (2) the due date of your tax return for the year you sold the relinquished property, including extensions.

IRS Forms You May See

Form 8824 reports the exchange. Other forms may report the taxable gain components.

• IRS Form 8824 (Like-Kind Exchanges): filed with the federal return for the year the exchange began (year the relinquished property sold).

• IRS Form 4797 / Schedule D: commonly used to report taxable gain components (capital gain, depreciation recapture, etc.).

• IRS Form 6252 (Installment Sale Income): may apply if a note is carried back on the sale (confirm with your tax advisor).

IRS Forms You May See

Form 8824 reports the exchange. Other forms may report the taxable gain components.

Bullets (tight and scannable)

• IRS Form 8824 (Like-Kind Exchanges): filed with the federal return for the year the exchange began (year the relinquished property sold).

• IRS Form 4797 / Schedule D: commonly used to report taxable gain components (capital gain, depreciation recapture, etc.).

• IRS Form 6252 (Installment Sale Income): may apply if a note is carried back on the sale (confirm with your tax advisor).

Webinar: 1031 Exchanges Issues in Today's Market

Friday, February, 27th
1:00 PM – 2:00 PM PST
CPE Credit Available

This one-hour intermediate/advanced webinar provides a concise and thorough overview of 1031 exchanges for accountants, CPAs, and tax advisors. This webinar covers critical time deadlines, like-kind requirements, fractional ownership, oil/gas/mineral rights, related party transactions, partnership/LLC scenarios, reverse and improvement exchanges, and how to avoid common pitfalls.

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Federally Declared Disaster Extension Information

Click the link below to determine if you may qualify for an extension.

irs.gov/newsroom/tax-relief-in-disaster-situations

Additional information here: apiexchange.com/disaster-relief/

Talk to a 1031 expert today.

Mike Willoughby
Division Manager
833.576.1031
mike@apiexchange.com

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We'll make sure your exchange is smooth, compliant, and successful.