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Baltimore
City -
Canton
Fells Point
Federal Hill
Baltimore
City N. -
Roland Park
Guilford
Homeland
Baltimore County -
Ruxton
Cockeysville
Lutherville
Hunt Valley
Greenspring Valley |
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Asset Preservation's
"The Ever-Changing World"
Identification Rules
"It's esential to adhere
to these requirements"
The identification period in a delayed exchange
begins on the date the Exchanger transfers the
relinquished property and ends at midnight on
the 45th calendar day thereafter. To qualify for
a ?1031 tax deferred exchange, the tax code requires
identifying replacement property:
In a written document signed by the Exchanger
Hand delivered, mailed, telecopied, or otherwise
sent
Before the end of the identification period
to
Either the person obligated to transfer the
replacement property to the Exchanger [generally
the "Qualified Intermediary"] or any other person
involved in the exchange other than the taxpayer
or a disqualified person.
The replacement property must be unambiguously
described (i.e. legal description, street address
or distinquishable name). The type of property
should be described in a personal property exchange.
Additional Issues
Exchangers acquiring a property which is being
constructed must identify this property and the
improvements in as much detail as is practical
at the time the identification is made. Exchangers
who intend to acquire less than a 100% ownership
interest in the replacement property should specify
the specific percentage interest. Exchangers should
always consult with their tax and/or legal advisors
about the specific identification rules and restrictions.
Any properties acquired within the 45-day identification
period are considered properly identified. An
investor has the ability to substitute new replacement
properties by revoking a previous identification
and correctly identifying new replacement properties
as long as this is done in writing within the
45-day identification period. Although Exchangers
can identify more than one replacement property,
the maximum number of properties that can be identified
is limited to:
A. Three properties
without regard to their fair market value ("3
Property Rule")
B. Any
number of properties so long as their aggregate
fair market value does not exceed 200% of the
aggregate fair market value of all relinquished
properties ("200% Rule")
C.
Any number of properties without regard to the
combined fair market value, as long the properties
acquired amount to at least ninety five percent
of the fair market value of all identified properties
("95% Exception").
Information Provided by
Asset Preservation, Inc.
National Headquarters: 800-282-1031 or
info@apiexchange.com
This information is not intended
to replace qualified legal and/or tax advisors.
Every taxpayer should review their specific transaction
with their own legal and/or tax counsel.
© 2000 Asset Preservation, Inc. |
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