In a delayed Section 1031 exchange, the exchangor has 45 days from closing to identify a replacement and 180 days to close the new property. Which option correctly describes this rule?

• A. The exchangor has 45 days from closing his property to identify a replacement and 180 days to close that escrow
• B. From closing escrow on his property to identify the new property and then has, including the initial 45 days, a total of 180 days to close that escrow
• C. Opening escrow on his property to identify the new property and then another 180 days to close that escrow
• D. Opening escrow on his property to identify the new property and then has, including the initial 45 days, a total of 180 days to close that escrow

Answer: (B)

In a delayed Section 1031 exchange, both the 45-day identification period and the 180-day replacement period start from the closing of the relinquished property and run concurrently. The 45 days to identify a replacement property must occur within that 180-day window, not after it. So you identify within 45 days, and you must close on the replacement property by day 180 (counting from the closing of the relinquished property). The identified option reflects this by saying the identification happens from the closing, and, including that initial 45-day period, there’s a total of 180 days to close—the 45 days are part of the same 180-day window.

The other choices are off because they either extend the timeline beyond 180 days, or they place the starting point at opening escrow rather than at the closing of the relinquished property.