An “Acquisition Period” refers to the period of time that a taxpayer has to identify and acquire replacement property after selling their original property. Specifically, the Acquisition Period is a 45-calendar-day period that begins on the day the taxpayer sells their relinquished property in a 1031 exchange.

During the Acquisition Period, the taxpayer must identify potential replacement properties in writing to the qualified intermediary (QI) or other designated person handling the exchange. The taxpayer must adhere to strict identification rules and guidelines to ensure that the identified replacement properties meet the requirements for a valid 1031 exchange.

If the taxpayer is unable to identify replacement property or acquire it within the 45-day Acquisition Period, the exchange will fail, and the taxpayer may be liable for taxes on the proceeds from the sale of their relinquished property.