In regard to the 1031 exchange 95% rule, what specifics do you need to meet the identification requirements with a DST? Does the name of the DST fund and the name of the specific properties suffice? These are great questions that we’ll answer in this article.
Properties Inside a DST
The syndicator wholesaling the DST should be able to provide you with a detailed description of the property or properties inside the DST. I would suggest that you attach an exhibit to the Replacement Property Identification Form with the details:
The distinctive name of the DST;
The address or addresses of the property or properties inside the DST;
The legal description of the property or properties inside the DST.
Generally, it is better to throw the kitchen sink at to unambiguously identify the replacement property. This is because the Treasury Regulation says:
Replacement property is identified only if it is unambiguously described in the written document or agreement. Real property generally is unambiguously described if it is described by a legal description, street address, or distinguishable name (e.g., the Mayfair Apartment Building).
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