Timeline for a 1031 Exchange in Texas
- Laurene Rodriguez
- Nov 10, 2025
- 2 min read
Texas real estate moves fast, but 1031 exchanges follow strict IRS deadlines. Missing a key date can disqualify your transaction and trigger capital gains taxes. Understanding the timeline and planning carefully ensures your exchange is smooth, compliant, and stress-free. Sunwest 1031 helps investors navigate each step with confidence.
Step 1 — Sale of Original Property
The 1031 exchange timeline begins the day you close on your original investment property. Document this closing date carefully, as all subsequent deadlines — including the 45-day identification window and the 180-day completion deadline — are calculated from this date.
Tip:Â Work closely with your qualified intermediary (QI) to ensure all funds are properly handled from the moment of sale.
Step 2 — 45-Day Identification Period
After the sale closes, you have 45 days to identify potential replacement properties. This must be done in writing and submitted to your QI.
Tips to Stay on Track:
Keep a clear written list of 3 or fewer properties (or 200% rule alternatives).
Consider market speed — especially in Texas, properties can move quickly.
Confirm your list with your QI to ensure IRS compliance.
Step 3 — 180-Day Exchange Completion
You must close on your replacement property within 180 days of selling the original property. The QI holds the funds and ensures the exchange remains tax-deferred.
Key Points:
Schedule closings early to account for potential delays.
Coordinate with title companies and lenders.
Double-check all documents are accurate and complete.
Step 4 — Post-Closing Documentation
After closing, maintain detailed records for IRS reporting. This includes:
Closing statements from both properties
Contracts and purchase agreements
Fund transfer confirmations and QI documentation
Proper record-keeping helps protect your tax-deferred status and ensures your exchange withstands IRS review if needed.
Get Started with Sunwest and ensure your Texas 1031 exchange stays on track. Our experienced team acts as your trusted qualified intermediary, helping you meet every deadline and maximize your investment potential.