In a 1031 exchange, it is very important to identify property in a written document signed by you, and delivered to the party assisting you with the exchange on or before 45 days from the date you sold the original rental property.
Identifying Replacement Property
It’s important to note that you can identify more than one property as the replacement property. The maximum number of replacement properties that you may identify without regard to fair market value is three. You may identify any number of properties provided that the total value of these properties is not more than 200% of the value of the original property you are selling. You don’t necessarily have to close all the properties you identify but you can name several if you’re not sure what will close and to observe the rules in technical note in terms of the value of properties you identify.
Start your 1031 Exchange
If you’re thinking about conducting a 1031 exchange, it’s a good idea to talk with a qualified intermediary. There are many requirements that govern a 1031 exchange, and you want to make sure you’re covering all your bases. We can answer questions, advise you throughout the exchange, and prepare the necessary documents in advance of closing. Contact the qualified intermediaries at Commercial Partners today to get started!