The 45-Day Identification Period
The 45-day identification period begins on the day you close on your relinquished property. During this time, you must identify potential replacement properties according to IRS rules.
Identification Rules
- Three Property Rule: Identify up to three replacement properties of any value
- 200 Percent Rule: Identify any number of properties as long as their total value doesn't exceed 200 percent of the relinquished property value
- 95 Percent Rule: Identify any number of properties as long as you acquire at least 95 percent of their total value
The 180-Day Exchange Period
The 180-day exchange period is your window to complete the acquisition of replacement property. This period begins on the same day as your relinquished property closing.
Key Considerations
Both deadlines are calculated based on calendar days, not business days. Missing either deadline will disqualify your exchange from tax-deferred treatment.