In a 1031 exchange, one way to buy numerous replacement properties without restriction on number or value is to close on all of them within the first 45 days after the date of the closing of your relinquished property. This is because you are deemed to have identified any replacement properties that you actually close on and receive within the first 45 days, and that way you do not have to make a written designation of replacement property identification (if you complete the purchases within the first 45 days).
95% Rule
Another option if you are going to purchase a large number of replacement properties after the 45th day, then you are permitted to designate your replacement properties under the little known and rarely utilized 95% Rule. Under this rule you are allowed to designate or identify any number of replacement properties, however, in order for the identification to be considered valid, you must actually purchase and receive within the 180 day exchange period 95% of the value of those designated properties. That can be a real challenge.
If the above two options of closing within the first 45 days or utilizing the 95% Rule do not work for you, then you are restricted to identifying under either the Three Property Rule (any three properties, regardless of value) or the 200% Rule (which caps the number of designated properties to an aggregate of twice the value of your relinquished property).
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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