Details taken from the Tolkien Gateway
The First Age ended with Morgoth's overthrow - a truly epic event which seems appropriate as the end of an era.
The Second Age did not end with the sinking of Númenor, and the reshaping of the Earth from a flat one where Valinor could be reached by sailing the sea to a round one with Valinor accessible only through sailing the Straight Road (world-changing events, by any measure!). Instead it ended over a hundred years later, with the first overthrow of Sauron.
The Third Age didn't end with the final overthrow of Sauron, though - it ended when the Ringbearers left Middle Earth.
What reasoning led to this divvying up of time, which sometimes follows hugely dramatic events, but skips others (the Reshaping of the Earth), and sometimes picks much less dramatic (though still significant, I'll admit) events? Do the Wise think that the Reshaping of the Earth is less important than the (temporary) defeat of Sauron?