CES Exchange Timelines & Deadlines

Question 1

How many calendar days does a taxpayer have to identify replacement property after closing on the relinquished property?

Accepted Answer

45 days

Answer

30 days

Answer

60 days

Answer

180 days

Question 2

How many calendar days does a taxpayer have to close on replacement property after transferring the relinquished property?

Accepted Answer

180 days

Answer

45 days

Answer

90 days

Answer

365 days

Question 3

If a taxpayer's 180th day falls on a Sunday, when must the exchange close?

Accepted Answer

The Sunday itself (no extension)

Answer

The following Monday

Answer

The preceding Friday

Answer

The next business day after the Sunday

Question 4

What happens if a taxpayer's tax return due date (including extensions) falls before the 180th day of the exchange period?

Accepted Answer

The exchange period ends on the tax return due date, whichever is earlier

Answer

The exchange period is automatically extended to 180 days

Answer

The taxpayer must file for a special IRS extension

Answer

The 180-day period always controls

Question 5

Can a taxpayer extend the 45-day identification period for any reason?

Accepted Answer

Yes, if a natural disaster has been federally declared

Answer

Yes, with written consent from the QI

Answer

No, extensions are never granted under any circumstances

Answer

Yes, if the replacement property is located out of state

Question 6

What is the consequence of failing to identify replacement property within the 45-day window?

Accepted Answer

The entire exchange fails and proceeds become taxable

Answer

The exchange period is reduced to 90 days

Answer

The taxpayer can substitute identified property with any real estate

Answer

Only a 10% penalty applies to the gain