95% Rule
An identification rule that allows any number of properties if the investor acquires at least 95% of the total value identified.
Nashional Investments · Updated October 2026
Educational definition only, not investment, tax or legal advice.
In practice
In a 1031 exchange, small details decide whether the full gain is deferred: the identification deadline, the value and debt you replace, and who holds the sale proceeds. The term 95% Rule comes up when we review an exchange or a Delaware Statutory Trust offering with a client. We read the offering memorandum, check the sponsor's track record and fees, and confirm the replacement fits the exchange rules before anything closes.
Common questions.
What does the term 95% Rule mean?
Why does 95% Rule matter for investors?
See how this fits into a real plan on our 1031 exchanges and DSTs page.
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