What This Includes

Our Identification Letter Drafting service helps investors draft compliant identification letters for their 45-day deadline in 1031 exchanges. This service is designed for property owners who need properly structured identification letters that meet IRS requirements and clearly identify replacement properties within the critical 45-day identification period.

We coordinate with Qualified Intermediaries and qualified escrow companies to ensure identification letters are properly drafted, delivered, and comply with IRS Revenue Procedure 2000-37 requirements. Identification letters are critical legal documents that must clearly identify replacement properties and specify which identification rule is being used. Our drafting process ensures letters meet all IRS requirements and are delivered to qualified intermediaries before the 45-day deadline.

Our identification letter drafting includes rule selection, property description accuracy, legal requirement compliance, and delivery coordination. We help Albuquerque, NM investors understand the specific language and format required for IRS-compliant identification letters. Our process covers all identification rules including three-property, 200-percent, and 95-percent rules with appropriate drafting for each.

We ensure identification letters are clear, unambiguous, and legally sufficient. Our team reviews all property descriptions, values, and rule applications to ensure letters will be accepted by qualified intermediaries and the IRS.

FAQs about Identification Letter Drafting

What must be included in a 1031 exchange identification letter?

1031 exchange identification letters for Albuquerque, NM investors must include the taxpayer's name, clear property descriptions (legal descriptions preferred), property values if using 200-percent rule, identification rule being used, and delivery to qualified intermediary before 45-day deadline. Letters must be unambiguous and comply with IRS Revenue Procedure 2000-37. We help Albuquerque, NM investors draft compliant identification letters that meet all IRS requirements.

What are the different identification rules and how do they affect letter drafting?

The three identification rules for Albuquerque, NM investors are: three-property rule (identify up to three properties of any value), 200-percent rule (identify any number of properties as long as total value doesn't exceed 200% of relinquished property value), and 95-percent rule (acquire at least 95% of identified properties' total value). Each rule requires different information in the identification letter. We help Albuquerque, NM investors choose the right rule and draft appropriate identification letters.

What happens if my identification letter is not compliant?

If an identification letter for Albuquerque, NM investors is not compliant with IRS requirements, the exchange may fail and taxes become due. Common issues include unclear property descriptions, incorrect rule application, or late delivery. We help Albuquerque, NM investors avoid these issues by drafting compliant letters and coordinating proper delivery to qualified intermediaries.

Can I change my identification letter after the 45-day deadline?

Albuquerque, NM investors cannot change their identification letter after the 45-day deadline expires. The letter locks in the identified properties and rule. We help Albuquerque, NM investors draft accurate identification letters and ensure they are delivered before the deadline to avoid the need for changes.

How do I deliver the identification letter to the qualified intermediary?

Identification letters for Albuquerque, NM investors must be delivered to the qualified intermediary by the 45-day deadline. Delivery methods include hand delivery, certified mail, or electronic delivery if accepted by the intermediary. We help Albuquerque, NM investors coordinate proper delivery and obtain confirmation that letters were received before the deadline.

Identification Letter Drafting