The short answer
Yes. The exchange period ends "at midnight on the earlier of the 180th day" after your sale or the due date of your return including extensions, so receiving the replacement on day 180 itself is on time under Reg. section 1.1031(k)-1(b)(2)(ii). The regulation does not say whose midnight, and no ruling we could find settles it, so plan to finish in the earliest time zone involved. What has to happen by then is your receipt of the property, which in practice means funding and delivery of the deed. For a sale late in the year, check whether your return due date ends the period before day 180 does.
At a glance
| Last day | Day 180 counts; the period ends at midnight that night |
|---|---|
| Counting | Calendar days from the sale date, which is day zero |
| Earlier cutoff | The due date of your return for the sale year, including extensions |
| Individuals | Returns due April 15, extendable to October 15 by filing for an extension |
| Time zone | Not specified in the Code or regulations |
| What must happen | You must receive the property, not just sign a contract |
| Weekend or holiday | Day 180 does not move |
Day 180 is inside the period, so a day-180 closing works
Section 1031(a)(3)(B) requires that replacement property be received by the earlier of "the day which is 180 days after the date on which the taxpayer transfers the property relinquished" or the return due date. The regulation states the end as "midnight on the earlier of the 180th day thereafter or the due date (including extensions)" of your return for the year of the sale.
Day zero is the sale date and the next calendar day is day 1. The Form 8824 instructions repeat the rule on line 6: the property must be received by the earlier of the 180th day or the return due date including extensions.
Weekends and holidays do not move the date; see whether the deadlines include weekends and holidays.
No rule names a time zone, so use the earliest midnight in the deal
The regulation says only "midnight." It does not say whether that is midnight where you live, where the property sits, or where the intermediary is, and we found no IRS ruling or court decision on the point.
A practical rule removes the question. If you live in California and the replacement is in Florida, treat Eastern midnight as the deadline. Better still, plan to fund and receive the deed during business hours, because title companies, banks and county offices set their own cutoffs for wires and recordings, and those cutoffs are not extended for you.
Recording is notice to the world; it is not the same as the transfer. Whether recording on day 181 after a day-180 funding is enough is not addressed by the regulation, so arrange to fund, deliver the deed and take possession on day 180 or earlier.
Worked example: a November sale can lose two weeks to the return due date
Hypothetical dates. You sell a rental on Monday November 2, 2026. Day 45 is Thursday December 17, and day 180 is Saturday May 1, 2027.
Your 2026 individual return is due Thursday April 15, 2027. Under the regulation, the period ends on the earlier date, so without an extension your exchange ends April 15, sixteen days before day 180. The regulation's own example makes the same point, ending a November 1992 exchange on the March 15, 1993 corporate return due date unless the six-month extension applied.
Filing for the automatic extension, which the IRS says gives individuals until October 15, restores the full period to May 1, 2027. When and how to do that is covered in do I need to file a tax extension to keep my full 180 days.
- Calendar-year individuals face the trap for sales from about mid-October through December 31.
- Corporations and other entities have different due dates; use the entity's own return due date.
- If the exchange is still open near April 15, talk to your CPA before filing the sale-year return.
Build in days, not hours
A closing set for day 180 has no room for a late wire, a missing signature or a lender's final condition. Schedule the closing several business days earlier and treat day 180 as the fallback.
Ask your intermediary to confirm the transfer date, day 45, day 180 and the return-date cutoff in writing at the start. Know that a signed purchase contract alone does not satisfy the receipt requirement; see a contract signed but not closed by day 180.
If the closing slips past midnight on the last day, the exchange fails for that property and the intermediary's agreement governs when funds come back; see when the QI releases funds after a failed exchange.
A trust interest on your list can close faster than a building
When a direct purchase is at risk on day 175, a Delaware Statutory Trust interest named on your day-45 list may be able to close sooner, because the trust already owns the property and has its financing in place. It cannot be added after day 45.
How fast that can happen is covered in how quickly a DST can close. Confirm the sponsor's own funding cutoff for the last day, because subscription acceptance and funding are separate steps.
Related questions
Is day 180 counted from the sale date or the day after?
The sale date is day zero. Count 180 calendar days forward, and the period ends at midnight on that day.
If day 180 is a Sunday, do I get until Monday?
No. The regulation counts calendar days and does not move the end of the period for weekends or holidays, so close by Friday.
Does the deed need to be recorded by day 180?
The rule requires that you receive the property. Recording is not the same event, but the safest plan is to fund, receive the deed and record by day 180.
Can I sign the closing documents on day 180 and fund on day 181?
That is risky, because receipt generally follows the transfer of ownership, which happens at funding and delivery of the deed. Fund on day 180 or earlier.
Does the 180 days get shorter if I file my return early?
The period ends at the earlier of day 180 or the return due date including extensions. Ask your CPA before filing a return for the sale year while the exchange is still open.
Sources
Checked against these publications on September 30, 2026. Rules and figures change; confirm the current version with your CPA or attorney before you act. This page is general information, not tax or legal advice.