Identification Beyond Basics

If you will purchase a specific number of properties this should be incorporated into the letter:

"Of the 3 properties identified I will purchase only 2."

"If I purchase Prop 1, I will purchase only 1 property. If, however, I am unable to purchase Prop 1, I will purchase both Prop 2 and Prop 3."

There are an endless number of possibilities. First, decide what you want to accomplish, then we can assist you and your tax advisor put your goals into words.

2. IF you use the 200% rule please list the fair market value of each property identified.

At the end of the letter show the total of listed property values.

Also show the value of property sold and 200% of that value.

Leave nothing to the imagination.

We have a sample letter for you if you plan to utilize the 200% rule.

3. If you are purchasing less than 75% of a property and variables affect the exact percentage, clarifying language should be utilized to describe what will be purchased unambiguously. Consult your tax advisor and Amherst to explore options and wording.

4. If your business goals require that you purchase more than 3 properties, specific and often complex concepts can apply. We will ask for your purchase goals when your exchange is opened, well prior to your 45th day so your tax advisor and Amherst can assist with the wording of your Letter of Identification.

Your questions are always welcome at Amherst 1031.