Tuesday, July 23, 2024

Rules of Identification

One of these three rules can be applied to your 1031 Exchange

  1. The Three Property Rule - This is the most commonly used rule. The Exchanger may identify up to three properties without regard to their value.
  2. The 200% Rule - The Exchanger may identify more than three properties, provided their combined fair market value does not exceed 200% of value of the property sold.
  3. The 95% Rule - The Exchanger may identify any number of properties, without regard to their value, provided the Exchanger acquires 95% of the fair market value of those properties.