IRC § 1031
Exchange
Timeline
Enter the date your relinquished property closes.
Your Critical Deadlines
Identification Deadline
—
Exchange Completion Deadline
—
Identification Rules
Within the 45-day window, you must identify replacement property using one of the following rules:
The 3-Property Rule
You may identify up to 3 properties of any value as potential replacements.
There is no restriction on the fair market value of the identified properties.
This is the most commonly used rule due to its simplicity.
The 200% Rule
You may identify any number of properties, provided their combined fair market value does not exceed 200% of the relinquished property's value.
Useful when you want to identify more than 3 properties simultaneously.
The 95% Exception also exists: you may identify unlimited properties if you acquire at least 95% of the total identified value.
Understanding the Timeline
The 45-Day
Identification Period
Upon closing on the sale of your relinquished property, the IRS requires you to formally identify potential replacement properties within exactly 45 calendar days. This identification must be made in writing and delivered to a Qualified Intermediary (QI) — a neutral third party who holds the exchange proceeds.
The identification must be unambiguous, describing each property by its legal address, distinguishable name, or other clear designator. Verbal identifications do not qualify. The 45-day clock begins the day after closing and cannot be extended under most circumstances.
The 180-Day
Exchange Period
The complete exchange — meaning the closing on your replacement property — must occur within 180 calendar days of the sale of your relinquished property, or by the due date of your federal tax return for the year of the sale, whichever comes first.
If your tax return is due before the 180-day window closes, you may file for an extension to preserve the full period. The Qualified Intermediary must transfer the identified replacement property to you before this deadline expires or the exchange will be disqualified and full capital gains taxes will apply.
Next Step
Secure your tax deferral with a
vetted Qualified Intermediary.
Working with the right QI is the single most important step in a compliant exchange.
View Recommended Partners