You have just closed on your Fort Worth investment property, and now the clock is ticking. In a 1031 exchange, the timing is strict and the windows are short. If you plan well, you can keep your tax deferral and secure the right replacement asset without scrambling at the finish line. In this guide, you will learn the exact deadlines, how to count your days, what to submit to your qualified intermediary, and how to navigate Fort Worth logistics so you close on time. Let’s dive in.
1031 timelines at a glance
The federal rules set two hard deadlines for like-kind exchanges. Under Treasury Regulation 1.1031(k)-1, you must identify replacement property in writing within 45 days and complete your purchase within 180 days. These are calendar days, not business days. Weekends and holidays do not extend your timeline.
- Identification window: 45 days from the day after you transfer (sell) your relinquished property.
- Exchange window: 180 days from that same start point, or the due date of your federal return for that year including extensions, whichever is earlier.
- Reporting: You report the exchange on IRS Form 8824 for the tax year in which you sold the relinquished property.
For an overview of like-kind exchanges and reporting, review the IRS guidance on like-kind exchanges and the instructions for Form 8824. For the technical timing rules, see Treasury Regulation 1.1031(k)-1.
When the clock starts
Day 1 is the day after the transfer of your relinquished property. Confirm your transfer date from your closing statement and deed. Keep copies of your exchange agreement and the qualified intermediary’s confirmation that they received the proceeds and opened your exchange.
If you miss a deadline
Missing day 45 or day 180 generally disqualifies the exchange from deferral. Prevention is your best tool. Engage a qualified intermediary early, line up financing and title work, and keep backup properties identified before day 45.
How to identify properties
Your identification must be written, signed, and delivered to your qualified intermediary or another allowed party. It must describe each property clearly. Use street addresses or legal descriptions. For fractional interests like Delaware Statutory Trusts, use the exact issuer name and identifier.
You can identify using one of three tests:
- Three-property rule: Identify up to three properties of any value.
- 200% rule: If you identify more than three, the total fair market value of all identified properties cannot exceed 200% of what you sold.
- 95% rule: If you identify more than three and exceed 200%, you must acquire at least 95% of the value you identified.
Practical tips for Fort Worth:
- Prioritize specific addresses that you can put under contract quickly. Avoid vague descriptions.
- Use backup identifications. Name your first-choice property and add realistic alternates before day 45.
- Consider a blend of one to three core targets plus a 200% list of smaller options if you need flexibility.
- If direct deals are tight in your asset class, you can evaluate DSTs or fractional interests, but coordinate lender and sponsor timelines early.
Deal timeline you can follow
Use this step-by-step outline to move from sale to purchase with confidence.
Before you list or sell
- Engage a qualified intermediary and discuss the type of exchange you intend to use.
- Ask for the intermediary’s standard exchange agreement and closing instructions for the title company.
- Get preapproval from lenders familiar with 1031 timelines.
- Build a short list of replacement targets with clear descriptions and backups.
Day 0: Close the sale
- Close your relinquished property. Ensure sale proceeds are wired directly to the qualified intermediary. Do not accept the funds.
- Verify the official transfer date. This starts your 45- and 180-day clocks.
- Get a written confirmation from the intermediary that they received funds and opened your exchange.
Days 1–45: Identify in writing
- Deliver a signed identification notice to your intermediary. Ask for written acknowledgment of receipt.
- Conduct due diligence on identified properties: inspections, title review, surveys, and loan terms.
- Update or add identifications before day 45 if needed. Each change must be written and acknowledged.
Through Day 180: Manage contracts to closing
- Align contract timelines, financing, and contingencies so you can close before day 180.
- Confirm vesting and entity details early. Ownership should be consistent with exchange rules.
- Coordinate fund disbursement instructions with the intermediary and title company for closing.
On or before Day 180: Close the replacement
- Have your intermediary wire exchange funds directly to closing per the exchange documents.
- Confirm deed recording and keep a copy of the recorded instrument.
- Obtain the intermediary’s final statement showing how proceeds were applied.
After closing
- Keep a complete file: exchange agreement, identification notice, intermediary statements, closing statements, title work, and wiring records.
- Prepare to file Form 8824 with your timely filed tax return for the year of sale.
Fort Worth logistics that affect timing
Fort Worth investors benefit from clear planning around local title, recording, and lending workflows.
- Texas context: There is no state income tax, and there is no general real property transfer tax. Federal 1031 rules drive the timing and deferral. Local property taxes and assessments still apply. You can learn more about assessments through the Tarrant Appraisal District.
- Deed recording: Deeds are recorded with the Tarrant County Clerk. Recording times vary, so confirm your title company’s process and timeframes for exchange closings. Visit the Tarrant County Clerk for office information.
- Title and surveys: Title commitments and surveys in Fort Worth can take days to weeks depending on property type. Start title work early and match your contract dates to the exchange timeline.
- Lenders: Underwriting, appraisal, and closing can take multiple weeks. Make sure your lender’s milestones support your 180-day deadline.
- Market dynamics: The Fort Worth–Arlington area is competitive for certain asset types, including multifamily, industrial, and single-tenant net-lease. Identify backups before day 45 so you are not stuck if a first-choice deal falls out.
Work with your qualified intermediary
A qualified intermediary holds your proceeds, prepares exchange documents, accepts your identification, and wires funds for your replacement purchase. The intermediary must be independent, not your agent or related party.
Coordination checklist:
- Engage the intermediary before your sale closes. Funds must go directly to the intermediary to avoid constructive receipt.
- Provide the intermediary’s wiring instructions and exchange documents to your title company before closing.
- Send your signed identification to the intermediary within 45 days and get a written acknowledgment.
- Confirm deed and signature logistics with your intermediary and title company, especially for reverse or improvement exchanges.
Common pitfalls to avoid:
- Constructive receipt of proceeds. Do not take control of the funds.
- Late or vague identification. Use clear descriptions and meet day 45 without fail.
- Closing past day 180 due to title issues, funding delays, or recording timing. Build calendar buffers and keep parties aligned.
- Related-party transactions. Extra rules can limit deferral. Ask your intermediary to flag these early.
- Financing mismatches. If you reduce debt or take cash out, you may create taxable boot. Coordinate debt and equity sources with your lender and intermediary.
Identification checklist
Use this quick list to prepare a valid identification notice.
- Your name and exchange reference number.
- Each property’s street address and, if available, the legal description.
- For DSTs or fractional interests, the exact issuer name and offering identifier.
- The identification rule you are using: three-property, 200% rule, or 95% rule.
- Your signature and date.
- Delivery to your qualified intermediary by day 45, with written acknowledgment of receipt.
Reverse and improvement exchanges
If you need to acquire before you sell, or you plan to improve the replacement property, you have options. Reverse exchanges use an Exchange Accommodation Titleholder and still follow the 45- and 180-day rules tied to the relevant transfers. Improvement exchanges require that improvements be completed and the property be received as replacement within 180 days. Both variants are more complex and costlier. In Fort Worth, allow extra time for lender approvals, permits, and municipal coordination.
Simple 45/180 calendar template
Set these three dates as soon as you close your sale.
- Day 0: The date you transfer your relinquished property.
- Day 45: Last day to deliver written identification to your intermediary.
- Day 180: Last day to close on your replacement property, or the due date of your federal return for that year including extensions, whichever comes first.
Add reminders at day 30, day 40, day 170, and day 175. Share the calendar with your intermediary, title officer, lender, and your legal or tax advisor so everyone works toward the same milestones.
How Willoughby Agency supports your exchange
A successful 1031 in Fort Worth is about disciplined timing and local coordination. You get senior-level attention, market insight across residential, land, and commercial assets, and a team that understands how to align contracts, title, and lending to the 45- and 180-day clocks. We help you prepare a realistic identification plan, negotiate timelines that fit the exchange rules, and coordinate with your intermediary and title company so funds and documents flow on schedule.
Ready to map your next move with a clear plan and a calm process? Connect with Willoughby Agency to align your timeline, property targets, and closing strategy.
FAQs
What are the 1031 deadlines for a Fort Worth exchange?
- You have 45 calendar days after selling your relinquished property to identify replacement property in writing, and 180 calendar days to close, or the due date of your federal return including extensions if earlier. See the IRS overview of like-kind exchanges.
Do weekends or holidays extend the 45- or 180-day windows?
- No. Both periods are strict calendar days. Plan to hit your deadlines even if they land on weekends or holidays.
How do I count 180 days if my tax return is due sooner?
- The exchange must close by the earlier of 180 days or your federal return due date for that year including extensions. Review Form 8824 instructions and coordinate with your tax advisor about filing extensions.
Can I email my property identification to the intermediary?
- Identification must be written and delivered to the qualified intermediary. Many will accept email if it meets their procedures. Always get written acknowledgment of receipt before day 45.
Can my title company act as the qualified intermediary?
- Some title companies can serve as intermediaries, but the intermediary must be independent and not your agent or a related party. Confirm independence and experience before you close your sale.
Are there Texas transfer taxes or local issues I should plan for?
- Texas has no state income tax and no general real property transfer tax. You still need to plan for local property taxes and recording through the Tarrant County Clerk.
