Identifying Replacement Property in a 1031 Exchange by Christopher Sanz, JD, LLM

Posted on January 04, 2022

Investors must abide by very strict timelines and specific rules to yield the favorable tax deferral benefits of a 1031 exchange of real property. For example, investors generally have 45 days following a property sale to identify like-kind replacement property and no more than 180 days to close on the replacement property without triggering a taxable event. When identifying potential replacement property, investors must consider the following guidelines:

  • Investors may identify up to three replacement properties to complete the exchange
  • Investors may identity an unlimited number of potential replacement properties as long as the cumulative value does not exceed 200 percent of the sale of the relinquished property.
  • Investors may identify an unlimited number of potential replacement properties provided those properties can be acquired at 95 percent valuation.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email

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