The 45-Day Deadline: 1031 Identification Rules & Mistakes to Avoid

The 45-day identification period is one of the most important parts of a 1031 exchange. But what actually has to happen during those 45 days?In this episode, David and Tom Moore, the Exchange Brothers, break down when the 45-day clock starts, how to properly identify replacement property, and what happens when your plans change after Day 45.They walk through the 3-property rule, 200% rule, and 95% rule, including a simple $500,000 property example that makes the identification options easier to understand. They also explain how DSTs are identified, whether you need to be under contract before identifying a property, and what happens when an identified property falls through.Plus, we share stories from more than 35 years in the 1031 exchange business — including a remarkable exchange involving 24 replacement properties and roughly $1 million in potential tax.They also discuss an often-overlooked part of the exchange process: when your Qualified Intermediary can actually release your funds and why choosing a QI involves more than comparing fees.If you're selling investment real estate, currently in a 1031 exchange, or simply want to understand the process before you sell, this episode will help you better understand the deadlines and identification requirements before you're up against the clock.01:52 — When Does the 45-Day Clock Actually Start?05:24 — The 180-Day Deadline & Your Tax Return10:58 — The 3-Property Rule11:28 — The 200% Rule12:30 — The 95% Rule13:47 — The $1 Million Tax Story: 24 Replacement Properties15:14 — Do You Need a Contract Before Identifying?18:13 — How Specific Does Your Identification Need to Be?23:07 — When Can You Get Your 1031 Funds Back?Send us Fan MailThanks for listening! Subscribe to get all of the latest tax news and information.