1031 Tax Filing Requirements: The “Due Date of the Return” Rule That May Shorten Your 180-Day Period

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.

In a delayed 1031 exchange, the replacement-property deadline is not just “180 days.” Under IRS rules, the exchanger 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 the relinquished property was sold, including extensions.

IRS Forms Commonly Associated with a 1031 Exchange

IRS Form 8824 is used to report the exchange. Additional forms may report any taxable gain components.

• IRS Form 8824 (Like-Kind Exchanges): Filed with the federal return for the year the exchange began, which is generally the year the relinquished property was sold.

• IRS Form 4797 and/or Schedule D: Commonly used to report taxable gain components, such as capital gain or depreciation recapture.

• IRS Form 6252 (Installment Sale Income): May apply if seller financing or a carryback note is involved in the sale. Confirm with your tax and/or legal advisor.

Webinar: 1031 Exchange Issues in Today's Market

Friday, May 8
1:00 PM - 2:00 PM PDT
CPE Credit Available

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

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Family is the foundation of Donalee’s life. She is the proud mother of a blended family of six, four children, three sons and one daughter, now all successful and independent adults. She and her husband are also eagerly anticipating the arrival of their first grandchild this April. 

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We are grateful for Donalee’s leadership and dedication to API’s mission!

Disaster Relief Extension Information

If your exchange has been impacted by a federally declared disaster, you may qualify for an extension of certain 1031 exchange deadlines.

Review current IRS disaster relief information here:
irs.gov/newsroom/tax-relief-in-disaster-situations

Additional 1031 exchange disaster information is available here:
apiexchange.com/disaster-relief/

Talk to a 1031 exchange expert today.

Mike Willoughby
Division Manager
833.576.1031
mike@apiexchange.com

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