Identification Rules
The written rules for naming replacement candidates by day 45 — including how many you may list.
Definition
To validly identify replacement property you must put it in writing, describe it unambiguously, sign it, and deliver it to your QI by day 45. You may name more than one candidate, but you are limited by one of three counting rules: the 3-property rule, the 200% rule, or the 95% rule.
Why it matters
The counting rules are where people over-identify and accidentally blow the whole identification. Pick the rule you’ll rely on before you list properties.
Related terms
General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.