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Exchange Deadlines
There are two key deadlines that the Exchanger must meet to have a valid exchange:
- Identification Period : The Exchanger must identify the Replacement Property to be acquired by the end of the Exchange Period within 45 days of the transfer (close of escrow) of the first Relinquished Property.
- Exchange Period: The Exchanger must receive the Replacement Property within the earlier of 180 days after the date on which the Exchanger transferred the first Relinquished Property, or the due date (including extensions) for the Exchanger’s tax return for the tax year in which the transfer of the first Relinquished Property occurs.
Identification Requirements for Replacement Property
Replacement property must be properly identified within the Identification Period by at least one of the following:
- Completing the purchase of the Replacement Property within the Identification Period
- Identified in a written document (“Identification Notice”) signed by the Exchanger and hand delivered, mail, faxed, or otherwise sent by midnight of the 45th day, which is the end of the ID Period
The Identification Notice must contain an unambiguous description of the Replacement Property and must be signed by the Exchanger. This must include the legal description of the property, a street address or distinguishable name.
An ID of Replacement Property may be revoked prior to the end of the ID Period. The revocation must be done in writing signed by the Exchanger and made to the same person to whom the original ID notice was sent.
Three Property Rule: Up to 3 properties may be identified as potential Replacement Property. Exchangers would utilized this rule in case one of the ID’d properties fell through, or if indeed the Exchanger wanted to go into more than one replacement property.
200% Rule: The Exchanger may identify as potential Replacement Property any number of properties provided the aggregate fair market value of all of the identified properties does not exceed 200% of the aggregate fair market value as of the date of the transfer of all of the Relinquished Properties.
Securities offered through Pacific West Securities, Inc. Member FINRA/SIPC. Advisory services offered Pacific West Financial Consultants, Inc. A Registered Investment Advisor. AMBAR Financial Group is independent of Pacific West Securities, Inc.
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Student Housing
College Station, Texas |
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Office
San Antonio, Texas |
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