Realized 1031 Glossary of Terms

Identification Period

Written by The Realized Team | Jul 18, 2022 5:00:00 AM

Identification period, under IRC Section 1031, an exchanger or taxpayer executing a delayed exchange has 45 calendar days from the closing date of the sale of their relinquished property to formally identify a potential replacement property or properties.

Although replacement properties must be identified within 45 days, investors have a 180 calendar day exchange period to complete the exchange. For example, if an investor sells a property on January 1st, they would have until February 15th to identify potential replacement properties, but would have until June 28th (assuming a non-leap year) to complete the exchange.