When Must I Identify?
You must identify the replacement property(ies) within 45 days of the close of escrow of the relinquished property.
Who Can I Identify To?
The IRS states that identification must be in writing, signed by you and delivered to a person involved in the exchange like the qualified intermediary.
What constitutes a Valid Identification?
A valid identification will have the replacement properties clearly described. In the case of real estate, this means the legal description, street address or distinguishable name and proposed purchase price.
What Are the Identification “Rules”?
There are 3 methods for identification but you may only choose one. The “three property” rule, the “200%” rule, and the “95%” rule. Please call us at 866-944-1031 for details.
If I cannot Purchase Property That I Identify, Can I Substitute Other Properties?
If the taxpayer is within the 45 day identification period, correction or substitutions may be made to the identification. If the taxpayer has identified property and has passed the 45 day identification period, other property cannot be substituted.
