IDENTIFICATION PERIOD:
The taxpayer must identify replacemnet property(ies) within 45 days from the date of the first relinquished property closing by sending a written document signed by the taxpayer and delivered, within the Identification Period, to any person involved in the exchange. According to the Regulations, the replacement property must include an unambiguous description. Replacement properties may be listed by legal description, street address, or distinguishable name.
EXCHANGE PERIOD:
The Exchange must be completed by the earlier of: 1) 180 days from the date of the first relinquished property closing; or 2) the due date of filing the Taxpayer's federal income tax return, together with all extensions, for the year the first relinquished property was transferred.
IDENTIFICATION RULES:
Section 1031 regulations allow you to choose a replacement property by using ONE of the following three rules:
3 - Property Rule: Identify up to three (3) properties without regard to their fair market value
200% Rule: Identify any number of properties as long as their combined fair market value does not exceed 200% of the fair market value of all relinquished property.
95% Rule: Identify any number of properties regardless of their aggregate fair market value, provided 95% of the value of the identified properties are acquired before the end of the exchange period.