Identification Rules

According to the IRS, identification in a 1031 exchange must be documented in writing, with your signature, and delivered to a party involved in the exchange, such as the qualified intermediary. A valid identification must provide clear descriptions of the replacement properties, particularly in real estate transactions, including the legal description, street address, or a distinguishable name along with the proposed purchase price.

In the event that you are unable to acquire a property that you have identified, and it is still within the 45-day identification period, corrections or substitutions to the identification are permitted. However, if the taxpayer has identified properties and has surpassed the 45-day identification period, substitutions or changes to the identified properties are not allowed.

Please call us at (619) 436-1031 for more details.