The 45-day identification period is the most time-sensitive phase of any 1031 exchange. From the date your relinquished property closes, you have exactly 45 calendar days, including weekends and holidays, to formally identify potential replacement properties with your Qualified Intermediary — no informal extensions, no exceptions outside a federally declared disaster. Identification must satisfy either the three-property rule, up to three properties regardless of combined value, or the 200-percent rule, any number of properties as long as their combined fair market value does not exceed 200 percent of the relinquished property's sale price.
We front-load research and deal sourcing well before your sale closes so you enter the identification window with a vetted pipeline rather than starting from scratch. Properties are evaluated against your investment criteria and ranked so your formal identification letter, delivered in writing to your Qualified Intermediary before midnight on day 45, reflects genuine, closeable candidates rather than placeholders. Each candidate is described unambiguously, typically by street address or legal description, since a vague description can invalidate an otherwise timely identification.
Missing the 45-day deadline, or identifying weak candidates under pressure just to meet it, is the single most common reason 1031 exchanges fail. A failed identification converts the entire deferred gain into a taxable event for the year of sale, so preparation before the clock starts is the most direct way to eliminate that risk.
Asset focus
Challenges
- The 45-day clock runs on calendar days with no informal extensions, and investors routinely underestimate how quickly it passes once escrow closes.
- A vague or incomplete property description in the identification letter can invalidate an otherwise timely identification.
- Waiting to begin the property search until after the relinquished sale closes leaves little time to build a credible identification list.
- Verbal or informal identifications sent to a broker or attorney rather than the Qualified Intermediary do not satisfy the statutory requirement.
What we deliver
- A pre-close pipeline of vetted replacement candidates ready before the 45-day clock starts.
- A written identification letter that satisfies the unambiguous-description requirement under Section 1031.
- Coordination to ensure the identification reaches your Qualified Intermediary before the day-45 deadline.
- A ranked candidate list structured to satisfy the three-property rule or the 200-percent rule, whichever fits your situation.
Related services
Find replacement properties for your 1031 exchange
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
FAQ
Does the 45-day clock include weekends and holidays?
Yes. All 45 days are calendar days, not business days, and the deadline is not extended if day 45 falls on a weekend or federal holiday.
What identification rules can I use?
The three-property rule lets you identify up to 3 properties regardless of value. The 200-percent rule lets you identify more properties as long as their combined fair market value does not exceed 200 percent of your relinquished property's sale price.
Who must receive the written identification?
Your Qualified Intermediary, in writing, before midnight on day 45. Sending a list to your broker or attorney instead does not satisfy the requirement.
Can I change my identified properties after day 45?
No. Once the 45-day period closes, your identification is locked. You may only acquire property that was properly identified within that window, which is why the candidates on the list need to be real.
What if none of my identified properties can close?
The exchange fails and your deferred gain becomes taxable for the year of sale. This is why we build a pre-close pipeline of vetted, financeable candidates rather than aspirational ones.
How far in advance should I start looking?
Ideally before your relinquished property is even under contract. Entering the 45-day window with research already done, rather than starting the search once the clock begins, is the single biggest factor in a clean identification.