GLOSSARY | BANK GUARANTEE | ID CHECKLIST | CALCULATOR
LETTER OF IDENTIFICATION BASICS
Within 45 days of the transfer of relinquished property a letter listing potential replacement property must be received. The letter must be dated and signed by all parties to the exchange.
3 identification safe harbors (guidelines) from the IRS
- You may identify up to 3 properties of any value OR
- If more than 3 properties are identified, the combined fair market values of the properties identified may not exceed 200% of the value of the property relinquished (sold) OR
- Any number of properties of any value can be listed so long as 95% of the value of identified properties is purchased.
Simple language that does the job
I/We identify the following property(ies) to complete my/our IRC § 1031 Tax Deferred Exchange:
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List the properties in priority order, i.e. the one you hope to purchase first, the back-ups next. |
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Be specific. Utilize physical addresses including street number and name. List the condominium number, lot, or other identifying number as well as city, state and zip code. |
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Include the tax parcel number for each property if possible. |
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If purchasing only a portion of a property, specify the percentage. You must identify substantially what you purchase. |
Delivering your letter
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Faxes are time and date stamped |
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A mailed letter is postmarked |
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Be sure someone signs for your letter if it is delivered |
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Email must be of a scanned letter in order to include the signature |
Identification is not cookie-cutter. We specialize in customizing your letter once we understand your exchange goals and objectives.
