Validate your property identification against the three identification rules for 1031 exchanges. You must satisfy at least one rule to be compliant. The identification must be made in writing within 45 days of closing on your relinquished property.
Validate your property identification against the three identification rules for 1031 exchanges. You must satisfy at least one rule to be compliant.
Total number of replacement properties you've identified
Sum of the purchase prices of all identified replacement properties
Three Property Rule: You can identify up to 3 replacement properties of any value. This is the most commonly used rule and provides the most flexibility.
200% Rule: You can identify any number of replacement properties, but the total value of all identified properties cannot exceed 200% of the value of your relinquished property. This rule is useful when you want to identify more than 3 properties.
95% Rule: You can identify any number of replacement properties of any value, but you must acquire at least 95% of the total identified value. This rule is validated at closing, not at identification, so it requires careful planning.
Important: You must satisfy at least one of these rules. The identification must be made in writing and delivered to a qualified intermediary or other party involved in the exchange within 45 days of closing on your relinquished property.
Educational content only. Not tax, legal, or investment advice. Results are estimates only. Consult a qualified intermediary and tax advisor before making decisions. New Mexico does not impose a state real estate transfer tax. Recording fees and title insurance premiums still apply.
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Don't risk your tax benefits with improper identification. Our experts ensure your 1031 exchange meets all IRS requirements and timelines.