A 1031 exchange gives an investor 45 calendar days from the closing of the relinquished property to put replacement candidates in writing. That is the full clock, not a suggestion, and it does not pause for a holiday weekend or a slow title search. On Long Island, where a Nassau or Suffolk closing can trail a signed contract by months, the 45-day window often starts before an investor has fully turned their attention to what comes next.
How the Clock Actually Runs
Day one is the date the relinquished property closes, not the date the exchange agreement was signed or the date a qualified intermediary was engaged. From there the count moves forward on ordinary calendar days. If day 45 lands on a Saturday, it does not roll to the following Monday, and the Internal Revenue Code has never carved out an exception for that. Investors who treat the 45 days as roughly six or seven weeks, rather than counting the exact date, are the ones most likely to miss it by a day or two.
Because the window is short, the practical work of finding replacement property has to start well before closing on the relinquished side. Waiting until funds land with the qualified intermediary before opening a search often leaves an investor with two or three weeks of real runway once broker calls, site visits, and lender conversations are factored in.
The Three Identification Methods
The tax code allows an investor to identify replacement property under one of three methods, and the choice has to be made by day 45, not adjusted afterward. The three-property rule permits up to three properties of any value, which is the method most single-property exchanges use. The 200 percent rule allows an unlimited number of properties as long as their combined fair market value does not exceed twice the sale price of the relinquished property, useful when an investor wants a longer backup list across several smaller assets. The 95 percent rule removes the count and value caps entirely, but carries a strict condition: the investor must actually acquire at least 95 percent of the total value identified, which makes it a rule most exchangers avoid unless they intend to close on nearly everything named.
What Counts as a Valid Written Identification
A valid identification names the property with enough specificity that an outside party could locate it without guessing, generally a legal description or a full street address. It has to be signed by the investor and delivered, in writing, to the qualified intermediary or another party to the exchange who is not a disqualified person, such as the investor's own broker or a family member. A verbal mention to an agent, or an address typed into a text message to that same agent, does not satisfy the requirement on its own. Until midnight on day 45, the list can be revoked or amended freely; after that moment it locks, and no substitution is permitted even if a better property surfaces on day 46.
Why the Window Runs Tighter on Long Island
Nassau and Suffolk property tax bills can shift enough between a broker's first estimate and a signed contract to change how a candidate property underwrites, so a serious identification list needs a current tax figure attached to each address rather than a stale one pulled from a listing. Built-out submarkets, from Nassau's village centers to Suffolk's older industrial parks near the LIE and Route 110, do not carry much open inventory, which means outreach has to begin in the first week, not the third. Anything requiring a variance or a use change from a town or village board belongs on the list as a backup candidate at best, since municipal review calendars run on their own schedule and have no obligation to respect an exchange deadline.
Common 1031 Exchange Questions
Does the 45-day period include weekends and holidays?
Yes, it is a straight calendar-day count starting from the closing date of the relinquished property. There is no extension for weekends, federal holidays, or delays on the replacement side. If day 45 falls on a Sunday, the deadline stays on that Sunday.
Can you identify more than three properties?
Only under the 200 percent rule, which caps combined identified value at twice the sale price of the relinquished property, or the 95 percent rule, which removes the cap but requires closing on 95 percent of the value named. Outside those two paths, the three-property rule limits identification to three addresses regardless of value.
What happens if you don't identify anything by day 45?
The exchange fails, the qualified intermediary returns the held proceeds, and the transaction is treated as a taxable sale in the year the relinquished property closed. There is no extension available for missing the identification deadline itself, even by a single day.
Can you change your identified properties after submitting the list?
Yes, up until midnight on day 45 the list can be revoked or replaced in writing. Once that deadline passes, the identified properties are locked, and a new candidate cannot be substituted in even if the original one falls through in escrow.
Who does the written identification need to go to?
It has to be delivered in writing to the qualified intermediary or to another proper party to the exchange, not to a real estate agent or a related party. A signed letter, fax, or email to the qualified intermediary is the standard method most exchanges use.
