Arizona Real Estate License Practice Exam 2026 – All-in-One Resource to Pass with Confidence!

In a 1031 exchange, the investor has specific timeframes in which they must operate to successfully defer capital gains taxes. After selling a property, an individual has 45 days to identify potential like-kind replacement properties. This initial period is critical, as it sets the stage for the next step in the exchange process.

After the identification period, the investor must complete the purchase of one or more of those identified properties within 180 days from the sale of the original property. This means that Jane has a total of 180 days to finalize her purchase, ensuring that she adheres to the IRS guidelines for 1031 exchanges. The 180-day rule is important because it provides a clear deadline for completing the transaction and safeguards the tax-deferred status of the exchange.

Thus, the answer indicating Jane has 180 days to purchase an acceptable like-kind property is accurate, emphasizing the importance of adhering to these timelines to qualify for the tax benefits of a 1031 exchange.