Process

• Taxpayer's Relinquished Property:
  - Purchase Agreement
  - Exchange Documents
  • Exchange Agreement - Signed
  • Assignment of Purchase Agreement
  • Notice of Assignment - Signed
  - Closing Instructions, Settlement Statements, and Wiring Instructions
  - Direct Deed from Taxpayer to Buyer
• Taxpayer's Replacement Property:
  - Identification Documents
  - Purchase Agreement
  - Exchange Documents
  • Assignment of Purchase Agreement
  • Notice of Assignment - Signed
  - Closing Instructions, Settlement Statements, and Wiring Instructions
  - Direct Deed from Seller to Taxpayer within specified 1031 Exchange Deadlines

• Day 0: Closing on Relinquished Property
• 45 Days: Identify Replacement Property
• 180 Days: Close on Replacement Property
  - Must close by the earlier of 180 Days from the relinquished property Closing or the Due Date of Filing Federal Income Tax Return with Extensions.

• Three (3) Property Rule:
  - Any 3 Qualifying Properties. FMV does not come into play!
• 200% RULE:
  - Any Number of Properties as long as their aggregate Fair Market Value (FMV) at the End of the Identification Period does not Exceed 200% of the aggregate FMV of all Relinquished Properties as of the Date the Properties were Transferred.
• 95% RULE:
  - Any Replacement Property Actually Received by the Taxpayer During the 45-day Identification Period will be Treated as Identified, and
  - Any Property that was Identified during the Identification Period and was Acquired by the Taxpayer Before the end of the Exchange Period as long as the Aggregate Received is > 95% of the Aggregate FMV of ALL Identified Properties.
• Identifying Qualified Properties:
  - Must be in Writing
  - Clearly Identified Property Description
  - Identifications Must be Signed by Taxpayer
  - Must be Sent Before Midnight on the 45th Day
  • Day Prior to Holiday or Weekend of the 45th Day
  - Can be Revoked On/Before Midnight of the 45th Day