Forty-five days to identify, one hundred eighty to close. A practical walkthrough.
A 1031 like-kind exchange lets an investor defer capital gains by reinvesting proceeds into another qualifying property. The mechanics are strict, and the clock is unforgiving.
The 45-day rule
From the sale of the relinquished property, you have 45 days to formally identify replacement candidates. A qualified intermediary holds the proceeds so you never take receipt of them.
The 180-day rule
You then have a total of 180 days from the original sale to close on a replacement property. Net-leased sale-leaseback assets, with a tenant already in place, are a common fit for this window.
Why it matters here
For investors, a sale-leaseback acquisition can be a clean 1031 target: income from day one, a committed operating tenant, and a long lease that suits a hold.
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