Common Identification Issues

Meeting the identification deadline can be challenging. It’s imperative that you submit your list of replacement property choices within 45 days of your sale and that they be acquired within 180 days, or the due date of your tax return. Here is a quick guide for your reference:

  • Must be within the United States, the 50 states or the District of Columbia.
  • Cannot be owned by a related party unless the related party is also doing an exchange.
  • Cannot occupy upon acquisition; personal use is limited to 14 calendar days or ten percent of the days actually rented, whichever is greater.
  • New property must be in the same name as the old property, the IRS is tracking the taxpayer identification number, which must be the same for both the old and the new property.
  • Must intend to maintain the “investment intent” from the Relinquished Property to the Replacement Property.

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