Generally, when one discusses exchanges, the type of exchange referred to is the delayed deferred or starker exchange. This term comes from the exchanger’s name, who was first challenged for a delayed exchange by the internal revenue service. And it was from this tax court conflict we got the code change in 1984 that formerly recognized the delayed exchange concept for the first time.
As mentioned earlier, this is now the most common type of exchange. There is in the delayed, deferred exchange that relinquished properties sold at time one, and after a delay, the replacement property is acquired at that time. The timing requirements are these; you have a total of 180 calendar days or the due date of your tax return to complete an exchange.
This is known as the exchange period. Also, the first 45 days of the 180-day exchange period is known as the identification period in which you need to identify some candidate or target properties to serve as your replacement property in your exchange.