Service

Three Property Rule Planning

Plan your identification using the three property rule for maximum flexibility.

How It Works

Our Three Property Rule Planning service helps investors strategically use the three-property identification rule to maximize flexibility in their 1031 exchange. This service is designed for property owners who want to identify up to three replacement properties of any value, giving them multiple options while meeting the 45-day identification deadline.

We coordinate with Qualified Intermediaries and qualified escrow companies to ensure your identification letter properly lists up to three properties and complies with IRS requirements. The three-property rule allows you to identify up to three replacement properties regardless of their total value, as long as you acquire at least one of them within the 180-day closing deadline. This rule provides maximum flexibility for Albuquerque, NM investors who want to keep their options open.

Our planning process includes property evaluation, strategic selection of which three properties to identify, identification letter drafting, and coordination throughout the 45-day and 180-day deadlines. We help you understand when the three-property rule is the best choice versus the 200-percent rule, and ensure your identification strategy aligns with your acquisition goals.

What We Deliver

Strategic planning for three-property identification
Property evaluation and selection assistance
Identification letter drafting and review
Coordination with Qualified Intermediaries and qualified escrow companies
Education on three-property rule requirements and limitations
Timeline tracking for 45-day and 180-day deadlines
Acquisition planning for identified properties
Compliance monitoring throughout the exchange process

Example of the type of engagement we can handle

Example: Three Property Rule Planning in Albuquerque, NM

Scope: Help investor strategically select and identify three replacement properties under the three-property rule, draft identification letter, and coordinate with Qualified Intermediary for proper delivery within 45-day deadline.
Client Situation: Client had evaluated six potential replacement properties and needed to select three to identify. Wanted maximum flexibility without value restrictions and needed strategic guidance on which properties offered the best options.
Our Approach: Evaluated all six property options, analyzed acquisition feasibility for each, helped client select three properties that provided best combination of options, drafted identification letter with proper legal descriptions, coordinated with Qualified Intermediary, and ensured delivery before 45-day deadline.
Expected Outcome: Client successfully identified three strategic replacement properties, received confirmation from Qualified Intermediary, maintained maximum flexibility to acquire any or all three properties, and had 135 days remaining to complete acquisitions.

What We Deliver

Strategic planning for three-property identification
Property evaluation and selection assistance
Identification letter drafting and review
Coordination with Qualified Intermediaries and qualified escrow companies
Education on three-property rule requirements and limitations
Timeline tracking for 45-day and 180-day deadlines
Acquisition planning for identified properties
Compliance monitoring throughout the exchange process

FAQs about Three Property Rule Planning

What is the three-property rule?

The three-property rule allows Albuquerque, NM investors to identify up to three replacement properties of any value in their 45-day identification letter. You can acquire any or all of the three identified properties within the 180-day deadline. This rule provides maximum flexibility for Albuquerque, NM investors who want multiple options without value restrictions. We help Albuquerque, NM investors understand this rule and determine if it's the best choice for their situation.

How does the three-property rule differ from the 200-percent rule?

The three-property rule allows Albuquerque, NM investors to identify up to three properties regardless of total value, while the 200-percent rule allows unlimited properties as long as their total value doesn't exceed 200% of the relinquished property value. The three-property rule is simpler and provides more flexibility for Albuquerque, NM investors who want a small number of high-value options. We help Albuquerque, NM investors choose the right rule based on their property options and goals.

What identification rules must I follow after identifying three properties?

Once Albuquerque, NM investors identify three properties under the three-property rule, they can acquire any or all of those three properties within the 180-day deadline. You cannot acquire properties not identified unless you qualify for the 95-percent exception. We help Albuquerque, NM investors understand these requirements and ensure compliance throughout the exchange process.

What happens if I receive boot when acquiring one of my three identified properties?

If Albuquerque, NM investors receive boot (cash or non-like-kind property) when acquiring replacement properties, that boot amount is taxable. Boot can occur if the replacement property value is less than the relinquished property value, if debt relief exceeds new debt, or if cash is received. We help Albuquerque, NM investors structure acquisitions to minimize boot and coordinate with tax advisors to understand tax implications.

Can I change which three properties I identify?

Albuquerque, NM investors can revise their identification letter before the 45-day deadline expires, but cannot change it after the deadline. Once the 45-day period ends, you're locked into the properties identified. This is why strategic planning is important for Albuquerque, NM investors. We help you evaluate options and make informed decisions before the deadline.

Next Step

Discuss Three Property Rule Planning

Coordinate three property rule planning with specialists who understand Albuquerque, NM deadlines and national inventory.

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