TIMING AND IDENTIFICATION SIMPLIFIED
The replacement property must be identified within 45 days of the transfer of the first relinquished property. This 45-day rule may not be extended even if the 45th day should happen to fall on a Saturday, Sunday or legal holiday.
The acquisition of your replacement property must be completed by the earlier of:
- 180 days of the transfer of your first relinquished property; or
- The due date of filling your federal income tax return for the year in which you transferred the first relinquished property, including extensions. This 180-day rule may not be extended even if the 180th day should happen to fall on a Saturday, Sunday or legal holiday.
FULLY DEFERRED EXCHANGES
For your exchange to be fully tax-deferred, your replacement property(ies) must be equal to or greater in value and equity than your relinquished property. The debt on your replacement property(ies) must also be equal to or greater than the debt on your relinquished property, unless cash is added to offset debt.
You may identify replacement property according to the following rules:
- 3-property rule – Three properties, regardless of value; or
- 200 percent rule – Any number of properties, as long as their combined fair market value does not exceed twice the value of the relinquished property; or
- 95 percent rule – Any number of properties, regardless of their combined fair market value, as long as you acquire 95 percent or more of the total value of such properties
*Source: All 1031 content provided by First American Exchange Company
Preferred Qualified Intermediary:
First American Exchange Company
Certified Exchange Specialist
Senior vice President / Regional Manager
2500 Paseo Verde Pkwy., Suite 120
Henderson, NV 89074