When a 1031 exchange is conducted, there are two timelines that run at the same timn45-day identification period: You have 45 days from the closing date on your relinquished property to identify one or more replacement properties. The replacement property need not be under contract on the 45th day. The QI facilitating the 1031 exchange provides a form used to finalize the identification period. If the form is not received by midnight on the 45th day of the identification period, the exchange automatically terminates, and the funds from the sale of the relinquished property are forwarded. This means capital gains tax will be due and payable that same tax year.