Exchange Timelines & Deadlines Flashcards
6 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Exchange Timelines & Deadlines flashcards as text
How many calendar days does a taxpayer have to identify replacement property after closing on the relinquished property?
Answer: 45 days
The taxpayer has exactly 45 calendar days from the closing of the relinquished property to identify potential replacement properties.
How many calendar days does a taxpayer have to close on replacement property after transferring the relinquished property?
Answer: 180 days
The exchange period is 180 calendar days from the date of transfer of the relinquished property.
If a taxpayer's 180th day falls on a Sunday, when must the exchange close?
Answer: The Sunday itself (no extension)
The 180-day deadline is absolute — it does not shift for weekends or holidays, and the exchange must close by that date.
What happens if a taxpayer's tax return due date (including extensions) falls before the 180th day of the exchange period?
Answer: The exchange period ends on the tax return due date, whichever is earlier
The exchange period ends on the earlier of 180 days after the relinquished property closing or the due date of the taxpayer's tax return (including extensions).
Can a taxpayer extend the 45-day identification period for any reason?
Answer: Yes, if a natural disaster has been federally declared
The IRS may extend the 45-day identification period in cases of presidentially declared disasters, but not for ordinary circumstances.
What is the consequence of failing to identify replacement property within the 45-day window?
Answer: The entire exchange fails and proceeds become taxable
Failure to timely identify replacement property results in a failed exchange, making all deferred gain immediately taxable.