1031 Downlegs Timing

[Aaron Moayed]

Hello,

If I have two downlegs that are closing at different times and I am 1031ing both into one upleg, how does the 45-day/180-day timeline work? Are they both on their own timeline/overlap? Is it strictly based on the first one's close of escrow?

Thanks,
Aaron

[Dave Foster]

@Aaron Moayed Unless those two sales are on one contract and one settlement statement then your QI has to treat them as two separate exchanges that you will be combining into one purchase.  So each will have it's own unique 45 and 180 day deadlines and reinvestment requirements.  But as long as the exchange periods overlap and you end up purchasing at least as much as the total of both net sales. And use all of the proceeds from the sales in your purchase.  You'll defer all tax.  These are sometimes called a "consolidation" exchange.