The 45-Day and 180-Day Deadlines, Explained
What has to happen by each deadline, and what happens if you miss one.
Day 45: identification
By midnight of the 45th day after closing, you must deliver a signed, written list of potential replacement properties to your qualified intermediary. The description must be unambiguous, such as a street address or, for a DST, the specific offering name.
Day 180: acquisition
You must close on the identified property by the 180th day, or by your tax return due date for that year, whichever comes first. Filing an extension can preserve the full 180 days.
What if I miss one?
The IRS grants very limited relief, mainly for federally declared disasters. In most cases, missing a deadline means the exchange fails and the gain becomes taxable.
How DSTs help
Because DST properties are already acquired and financed, investors can often close within days. Many investors list DSTs as backup identifications in case a direct purchase falls through.
Have questions about your situation?
Book a complimentary strategy call with Creative Capital Wealth Management Group.
Schedule a Strategy CallEducational information only; not tax, legal, or investment advice. DSTs involve risk, including loss of principal, and are available only to accredited investors. Consult your own advisors.