Understanding 2025 Tax Deadlines for 1031 Exchanges Opened in 2024

Written By Logan Snodgrass

Get the facts before you accidentally trigger the tax!  

As Tax Day 2025 approaches, investors who completed 1031 exchanges in 2024 must prioritize accurate reporting to maintain IRS compliance and maximize tax deferral benefits. At 1031 Tax-Free Exchange Solutions, we aim to simplify the complexities of like-kind exchanges, ensuring seamless transitions and adherence to deadlines. Below, we outline key dates and reporting guidelines to help you prepare and determine if you will need to file an extension to buy more time to complete any open exchanges opened in 2024. 

Key 2025 Tax Deadlines for 1031 Exchanges  

Individuals  

  • Standard Filing: Submit Form 1040 (or 1040-SR) and Form 8824 by April 15, 2025. 

  • Extension Option: File Form 4868 by April 15 for a 6-month extension (new deadline: October 15, 2025). 

  • Maine/Massachusetts residents: Deadline shifts to April 17, 2025 due to state holidays. 

Businesses & Investors  

  • LLCs, Partnerships/S Corporations: File Form 1065 or 1120-S by March 15, 2025 (extended to September 15 with Form 7004). 

  • Corporations: Submit Form 1120 by April 15, 2025 (extended to October 15 with Form 7004). 

  • Farmers/Ranchers: March 3 deadline applies if estimated taxes weren’t paid by January 15. 

All entities must file Form 8824 for 2024 exchanges by their respective deadlines. 

How to Report Your 1031 Exchange  

Step 1: Gather Documentation  

  • Closing statements for relinquished and replacement properties. 

  • Exchange agreement from your Qualified Intermediary (QI). 

  • Exchange Banking Statement 

  • Depreciation schedules (critical for recapture calculations). 

Step 2: Complete Form 8824  

This form details your exchange’s financials, including: 

  • Identification/acquisition timelines (45-day and 180-day rules). 

  • Adjusted basis of properties. 

  • Depreciation recapture calculations (25% federal rate on claimed depreciation). 

Pro Tip: Our team at 1031 Tax-Free Exchange Solutions provides free Form 8824 checklists to streamline this process. 

Special 2024 Exchange Scenarios  

Multi-Year Exchanges  

If your exchange began in 2024 but concludes in 2025: 

  • Report the entire transaction on your 2024 return. 

  • File Form 4868 (extension) if your 180-day window extends past April 15. 

Failed Exchanges  

Unused funds or missed deadlines trigger taxable gains. Options include: 

  • Installment sale elections (IRS Section 453) to defer partial taxes (you may be able to elect which year to realize the gains, in 2024 or in 2025 in many cases). 

  • State-specific reporting (e.g., California’s Form 3840). 

State-Level Considerations  

While federal rules govern 1031 exchanges, states like California and Oregon impose additional requirements: 

  • Track deferred gains even for out-of-state replacement properties. 

  • Penalties apply for non-compliance. 

Our Advisory Services Include: 

  • State-specific compliance reviews. 

  • Depreciation recapture optimization. 

  • Tax Mitigation Strategies 

Why Partner With Us?  

At 1031 Tax-Free Exchange Solutions, we: 
✅ Facilitate IRS-compliant exchanges with vetted QI partners. 
✅ Provide deadline tracking tools and personalized service and support. 
✅ Offer free consultations to address all matters about IRC Section 1031 Exchange. 
✅ Over two decades full-time experience committed to IRC Section 1031 Exchange 

The material in this post is for informational purposes only. 1031 Tax-Free Exchange Solutions acts as an advisor, advocate, and facilitator of 1031 Exchanges; we do not provide legal or tax advice. Consult your CPA or tax attorney for case-specific guidance. 

Logan Snodgrass
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