Timing Your 1031 Exchange: When Does the Clock Really Start?

Managing the exchange timelines, the 45‑day identification window and the 180‑day exchange period is critical to a successful 1031 tax‑deferred swap—but did you know the IRS doesn’t look at your deed recording date to kick off the clock? Instead, it examines when the “benefits and burdens of ownership” transfer, which can sometimes occur days before recording a transfer. The IRS can also argue that certain economic arrangements caused the benefits and burdens of ownership to transfer prematurely. For example, “soft closings.”

Curious about how courts determine the true sale date—and how that affects both your identification and closing deadlines?

Read the full guide on 1031 exchange timing here.