What are the rules for identifying replacement properties?
Replacement property must be unambiguously identified in writing. In general, replacement property must be unambiguously identified in writing to another principal in the exchange prior to the expiration of the identification period. Identified replacement property must meet either the 200% rule, the three property rule or the 95% rule. Property not properly identified will be considered non like kind. An unambiguous identification may be made by written accepted contract or otherwise but must provide a unique and singular description of the replacement property and must be in writing signed by the taxpayer. Real property is so described by a legal description, street address or distinguishable name. The taxpayer must deliver the identification on or before midnight on the 45th day following the initial transfer date counting the initial transfer date as day number 1. The preference is to deliver such notice to the qualified intermediary for the exchange. However, the identification ma
