1031 Fun Facts with Tina Colson-Jones
Gotta Minute – Learn A Lot!
This week’s fun fact is all about what you can identify in a 1031 Exchange, and how to do that. Did you know… from the moment a relinquished property closes, the Exchangor only has 45 days to identify potential replacements and 180 days to seal the deal. But what properties can you actually identify, and does yours qualify?
Join Tina Colson-Jones for a quick dive into this intriguing real estate concept.
Read the Full Transcript
Tina Colson-Jones: Welcome to your 1031 Exchange fun fact. Today we’re going to talk about the 45 de-identification and the identification of the replacement property.
The identification must be sent or delivered in writing by the Exchangor to someone involved in the exchange who is not a disqualified party. For an identification to be valid, it must be received by a qualified party by midnight on the 45th day. Identifications are usually made to the facilitator via a 45-day identification form.
There are three identification rules which are all independent of one another:
The first is the taxpayer may identify up to three properties of any value.
The second rule is called the 200% rule, meaning if you were to identify four or more properties, the total value of all identified properties does not exceed 200% of the fair market value of all properties relinquished.
The third is the 95% rule. If more than three properties are identified and the total value of identified properties exceeds 200% of the relinquished properties value, 95% of the aggregate value of all properties identified must be acquired.
Remember that each rule works independently of one another, therefore only one of the rules must be satisfied. Properties must be identified by address or a legal description. Thank you for joining me.
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David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 503-635-1031.
"WASHINGTON STATE LAW, RCW 19.310.040, REQUIRES AN EXCHANGE FACILITATOR TO EITHER MAINTAIN A FIDELITY BOND IN AN AMOUNT OF NOT LESS THAN ONE MILLION DOLLARS THAT PROTECTS CLIENTS AGAINST LOSSES CAUSED BY CRIMINAL ACTS OF THE EXCHANGE FACILITATOR, OR HOLD ALL CLIENT FUNDS IN A QUALIFIED ESCROW ACCOUNT OR QUALIFIED TRUST." RCW 19.310.040(1)(b) (as amended)
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
