Get 1031 Replacement Property Identification Form

The identification must be in writing and signed by the taxpayer, and the property must be unambiguously described. This generally means that the taxpayer identifies either the address of the property or its legal description.

You are basically limited to identifying 3 properties. You may identify more than 3 properties if the combined fair market values of the properties you identify do not exceed two times the sales price of the relinquished property.

Summary of the 1031 Exchange 3 Property Rule The Three Property Rule states that investors can identify up to three potential replacement properties, regardless of aggregate value, as long as they close on the purchase of at least one of them.

What Documents are Needed for a 1031 Exchange? Purchase and Sale Agreement. ... Exchange Agreement. ... Certificate of Citizenship. ... Form 8824. ... Replacement Property Identification Form. ... Assignment, Acceptance, and Notice of Replacement Property Contract. ... Addendum to Escrow Instructions. ... Final Closing Statement and Deed.

Requirements for IRC Section 1031 Exchanges Measured from when the relinquished property closes, the Exchangor has 45 days to nominate (identify) potential replacement properties and 180 days to acquire the replacement property. The exchange is completed in 180 days, not 45 days plus 180 days.

3 Property Rule : Regardless of their fair market value, maximum 3 properties can be identified. 200% Rule: Regardless of the number of identified properties, their combined fair market value must not exceed 200% of the aggregate fair market value of all relinquished properties.

ID Rule – 3-Property Rule: Provided that the fair market value of the new property or properties is equal or greater to the sales price of the Relinquished Property, the taxpayer should receive a full deferral of taxes. If, however, a taxpayer identifies more than three properties, then they move to the 200% Rule.

The Exchanger has 45 days from the date of the sale of the relinquished property to identify the potential replacement properties. The identification is a written letter or form which is signed and dated by the taxpayer, and contains an unambiguous description of the replacement property.

The identification must be in writing and signed by the taxpayer, and the property must be unambiguously described. This generally means that the taxpayer identifies either the address of the property or its legal description.