Under regulations issued by Internal Revenue Service for IRC Section 1031 tax-deferred exchanges, there are stringent requirements regarding the identification of the replacement properties.

These requirements must be met before the expiration of 45 days from the closing date of the relinquished property. The exact date of the 45th day is determined counting all Saturdays, Sundays and holidays.

It is the exchanger's responsibility to deliver to Equity 1031, LLC the identification of the replacement property on or before the 45th day. The exchanger may not identify any replacement property after the 45th day. Identification of all replacement property must be made in writing and must be signed by the exchanger.

An identification form can be used to identify the replacement property. The identification form is provided by Equity 1031, LLC to our clients.  It can be downloaded by logging into a secured area of our web site.

There are several rules that the Exchanger may follow in the identification process.

1/ Three Properties Rule: Identify any three properties.

2/ Two hundred percent (200%): Identify more than three properties with an aggregate value of not exceeding 200% of the value of the relinquished property.

3/ Ninety five percent (95%): Identify any number of properties provided at least 95% of their aggregate values are acquired.

*** If you have any questions about these 1031 exchange rules, please consult your tax attorney or accountant.