Time Lines

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There are Two - Time Lines Exchangors must work within to complete their exchanges, the identification Time Line and the completion Time Line.

Exchangors must identify all replacement properties no later than the 45th day after the date on which the Title is transferred to their relinquished property. There is no allowable extension of this Time Line.

Exchangors must take title to their replacement property or properties by either the 180th day after transferring title to their relinquished property, or the due date of the Exchangor's income tax return for the year in which the exchange occurred.

You as the Exchangor need to pay special attention to exchanges that begin in the last months of your tax year. You may need to extend your income tax return to assure that you have a full 180 days to complete your exchange.

Identification of Potential Replacement Properties -must be done in writing, and to a third party,
( qualified intermediary ) and should be done even when you are doing a simultaneous exchange.

If you the Exchangor wish to identify more than one potential replacement property you may do so. You may even acquire more than one replacement property, should you so desire.
Remember, if you identify more than one potential replacement property, you must comply with the Three Property Rule.

Three Property Rule

Exchangors may identify up to three properties without regard to the value of the properties.

200% Rule

Exchangors may identify as many properties as they choose, just as long as the total fair market value of all identified properties does not exceed 200% of the fair market value of the relinquished property.

95% Rule

Exchangors may identify as many properties as they choose, so long as they acquire identified properties that the fair market value of which is at least 95% of the total fair market value of all identified replacement properties.

Any property, which is acquired prior to the identification Time Line (45 days after transferring title to the relinquished property), is considered to have been validly identified.
Remember, this also means that the property must be included in determining whether you the Exchangor have complied with Three-Property Rule.

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