1031 like kind Exchange dates. What do I use for the identification date if it is after the purchase of the replacement property?

[corinneL]

I exchanged a property on 10/29/2025. The replacement property closed on 11/21/2025. Not all of the funds were used to purchase the replacement property so the identification date of the replacement property was 12/1/2025 which is when the balance of the funds were distributed.  This is also the date the Exchanger has used.  It is within 45 days of the exchange.

TT flagged the date entry on form 8824, line 5 (identification date of 12/1/25) as it is after line 6 (received like kind property date of 11/21/2025).

Should I enter the actual date of the acquired like kind property, 11/21/2025 aa the date of like kind property received even though the excess cash was not received until 12/1/25?

[Mike9241]

 Within 45 days of selling the original property, investors must identify potential replacement properties in writing, known as the 45-Day Identification Period. Additionally, the entire exchange must be completed within 180 days of the sale, referred to as the 180-Day Exchange Period.

The identification is a written (signed and dated by the taxpayer), unambiguous description of the property, and does not require that such properties be under contract or in escrow to qualify. Exchangers acquiring an undivided percentage interest (“fractional interest”) in a property should identify the specific percentage that will be acquired.

The Exchanger may change the properties identified as often as they want during the 45-day identification period by revoking the previously written identification and then identifying new potential replacement properties. It is essential that the identification is delivered by midnight of the 45th day, or postmarked by the 45th day, to the Exchanger’s Qualified Intermediary or to a party related to the exchange who is not a disqualified person. Typically, delivering the identification to the Qualified Intermediary is the safest course of action to prevent disqualification of the transaction for an invalid and/or untimely identification. If the Exchanger fails to deliver the identification on a timely basis or does not comply with one of the three identification options, the exchange will be disallowed.

so the identification date is the postmarked date on the written declaration.  

cash has nothing to do with identification. It's part of the boot, making part of the exchange taxable. 

[corinneL]

Mike,

We are within the 45 day notice period.  On form 8824, line 5, TT wants the date when the like kind property received was identified.  The property closed on 11/21/2025.  The identification by the Exchanger was on 12/1/2025.  The exchanger used the identified date as 12/1/25 as not all the funds received were used in the purchase of the replacement property.  A second property was not acquired for the balance of the funds so the Identification date was 12/1/25.

When I enter the following in TT:

Line 5 (date like kind property received was identified): 12/1/25

Line 6 (date line kind property received): 11/21/2025 

TT flags line 5 as bad date.  How do I get around that?

[AmyC]

To resolve the error in TurboTax and align with IRS instructions for Form 8824, Line 5, you should use the earlier date.  The program does not like that you bought the property before it was identified. Illogical.

• Line 5 (Date property identified): Enter 11/21/2025.
• Line 6 (Date property received): Enter 11/21/2025.

Even though the exchanger signed a formal identification paper on 12/1/2025, the law considers the acquisition of the property itself to be the ultimate form of identification. The fact that there was excess cash (boot) being held by the Qualified Intermediary (QI) until 12/1/2025 does not change the identification date of the physical property you bought.