Section 1031 Exchange Identification Letter

SECTION 1031 EXCHANGE IDENTIFICATION LETTER

REPLACEMENT PROPERTY IDENTIFICATION NOTICE

EXCHANGER INFORMATION

Exchanger Name(s): [FULL LEGAL NAME(S)]

Social Security Number / EIN: [SSN/EIN]

Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Telephone: [PHONE NUMBER]

Email: [EMAIL]

Entity Type:
☐ Individual
☐ Married Couple (Joint Ownership)
☐ Trust
☐ LLC
☐ Partnership
☐ Corporation
☐ Other: [DESCRIBE]

EXCHANGE INFORMATION

Exchange Number: [QI ASSIGNED NUMBER]

Qualified Intermediary:

• Company: [QI NAME]
• Address: [ADDRESS]
• Contact: [NAME]
• Phone: [PHONE]
• Email: [EMAIL]

Relinquished Property:

• Address: [PROPERTY ADDRESS]
• Legal Description: [LEGAL DESCRIPTION]
• Date of Transfer/Sale: [DATE]
• Sales Price: $[AMOUNT]

IDENTIFICATION DEADLINES

Critical Dates:

IMPORTANT: The identification must be received by the Qualified Intermediary by midnight on the 45th day. This deadline cannot be extended except in cases of presidentially declared disasters.

IDENTIFICATION NOTICE

[DATE]

[QUALIFIED INTERMEDIARY NAME]
[ADDRESS]

Re: Replacement Property Identification
Exchange Number: [NUMBER]
Exchanger: [NAME]
Relinquished Property: [ADDRESS]

Dear [QI CONTACT]:

Pursuant to Treasury Regulation § 1.1031(k)-1(c), I hereby identify the following property(ies) as potential replacement property(ies) for the above-referenced IRC § 1031 like-kind exchange.

This identification is made within 45 days of the transfer of the relinquished property, which occurred on [DATE].

IDENTIFIED REPLACEMENT PROPERTIES

IDENTIFICATION RULE BEING USED:

☐ Three-Property Rule - Identifying up to 3 properties regardless of value

☐ 200% Rule - Identifying more than 3 properties, but aggregate FMV does not exceed 200% of relinquished property value

• Relinquished Property Value: $[AMOUNT]
• 200% Limit: $[AMOUNT × 2]

☐ 95% Rule - Identifying properties exceeding 200% of relinquished property value (must acquire 95% of value identified)

PROPERTY IDENTIFICATION

Property 1:

Property Address:
[FULL STREET ADDRESS]
[CITY, STATE ZIP]

Legal Description:
[PROVIDE COMPLETE LEGAL DESCRIPTION OR ATTACH AS EXHIBIT]

County/Parish: [COUNTY]

Parcel/Tax ID Number: [NUMBER]

Property Type:
☐ Residential Rental
☐ Commercial
☐ Industrial
☐ Land
☐ Mixed Use
☐ Other: [DESCRIBE]

Estimated Fair Market Value: $[AMOUNT]

Additional Identifying Information:
[ANY OTHER INFORMATION THAT UNAMBIGUOUSLY IDENTIFIES THE PROPERTY]

Property 2:

Property Address:
[FULL STREET ADDRESS]
[CITY, STATE ZIP]

Legal Description:
[PROVIDE COMPLETE LEGAL DESCRIPTION OR ATTACH AS EXHIBIT]

County/Parish: [COUNTY]

Parcel/Tax ID Number: [NUMBER]

Property Type:
☐ Residential Rental
☐ Commercial
☐ Industrial
☐ Land
☐ Mixed Use
☐ Other: [DESCRIBE]

Estimated Fair Market Value: $[AMOUNT]

Additional Identifying Information:
[ANY OTHER INFORMATION THAT UNAMBIGUOUSLY IDENTIFIES THE PROPERTY]

Property 3:

Property Address:
[FULL STREET ADDRESS]
[CITY, STATE ZIP]

Legal Description:
[PROVIDE COMPLETE LEGAL DESCRIPTION OR ATTACH AS EXHIBIT]

County/Parish: [COUNTY]

Parcel/Tax ID Number: [NUMBER]

Property Type:
☐ Residential Rental
☐ Commercial
☐ Industrial
☐ Land
☐ Mixed Use
☐ Other: [DESCRIBE]

Estimated Fair Market Value: $[AMOUNT]

Additional Identifying Information:
[ANY OTHER INFORMATION THAT UNAMBIGUOUSLY IDENTIFIES THE PROPERTY]

[ADD ADDITIONAL PROPERTIES IF USING 200% OR 95% RULE]

IDENTIFICATION SUMMARY

Relinquished Property Value: $[AMOUNT]

Percentage of Relinquished Value: [%]

Identification Rule Compliance:
☐ Three-Property Rule: 3 or fewer properties identified
☐ 200% Rule: Total FMV does not exceed 200% of relinquished property
☐ 95% Rule: Must acquire 95% of identified value

ALTERNATIVE/CONTINGENT IDENTIFICATION (IF APPLICABLE)

In the event any of the above-identified properties becomes unavailable, the following alternative properties are identified:

Alternative Property A:
[ADDRESS]
[LEGAL DESCRIPTION]
Estimated FMV: $[AMOUNT]

Alternative Property B:
[ADDRESS]
[LEGAL DESCRIPTION]
Estimated FMV: $[AMOUNT]

Note: Alternative properties count toward the applicable identification rule limits.

CONSTRUCTION/IMPROVEMENT EXCHANGE (IF APPLICABLE)

☐ This identification includes property to be constructed or improved

Property to be Improved: [ADDRESS]

Improvements to be Made:
[DESCRIBE THE IMPROVEMENTS]

Estimated Cost of Improvements: $[AMOUNT]

Improvement Completion Timeline:
[DESCRIBE WHEN IMPROVEMENTS WILL BE COMPLETED]

REVOCATION NOTICE (IF APPLICABLE)

☐ This identification revokes all prior identifications made for this exchange

OR

☐ This identification revokes the following previously identified property(ies) only:
[LIST PROPERTIES BEING REVOKED]

Note: Revocations must be made in writing and delivered before the end of the 45-day identification period.

EXCHANGER CERTIFICATION

I, [EXCHANGER NAME], certify that:

1. This identification is made within 45 days of the transfer of the relinquished property

2. The identified properties are described with sufficient specificity to constitute an unambiguous identification

3. I intend to acquire one or more of the identified properties as replacement property in this like-kind exchange

4. I understand that I may only acquire property that has been properly identified

5. I understand that this identification may be revoked only before the end of the 45-day identification period

6. I have read and understand the identification rules under Treasury Regulation § 1.1031(k)-1(c)

Exchanger Signature: ___________________________________

Printed Name: [NAME]

Date: [DATE]

Co-Exchanger Signature (if applicable): ___________________________________

Printed Name: [NAME]

Date: [DATE]

DELIVERY INSTRUCTIONS

This identification must be delivered to:

1. Qualified Intermediary (Required)
   - [QI NAME]
   - [ADDRESS]
   - [EMAIL/FAX]

2. Settlement Agent (Optional but recommended)
   - [NAME]
   - [ADDRESS]

Delivery Methods:
☐ Personal delivery
☐ Certified mail, return receipt requested
☐ Overnight courier (FedEx, UPS, etc.)
☐ Facsimile: [FAX NUMBER]
☐ Email (if QI accepts electronic delivery): [EMAIL]

DO NOT deliver to:

• Your attorney, real estate agent, or other agent (disqualified persons)
• The Exchanger's own records only

CONFIRMATION OF RECEIPT

For Qualified Intermediary Use:

Identification received by: ___________________________________

Date received: _______________

Time received: _______________

Identification within 45-day period: ☐ Yes ☐ No

IMPORTANT REMINDERS

1. Deadline is Absolute: The 45-day deadline cannot be extended except for presidentially declared disasters.

2. Midnight Rule: Identification must be received by midnight on the 45th day, not just mailed or sent.

3. Unambiguous Description: Provide enough detail to identify the property without confusion. Street address plus legal description is recommended.

4. No Changes After 45 Days: Once the 45-day period expires, you cannot add, change, or revoke identified properties.

5. Must Acquire Identified Property: You can only acquire replacement property that was properly identified.

6. 180-Day Deadline: You must close on replacement property within 180 days of the relinquished property transfer (or by tax return due date, if earlier).

7. Retain Copy: Keep a copy of this identification and delivery confirmation for your records.

IDENTIFICATION RULES SUMMARY

Three-Property Rule:

• Identify up to 3 properties
• No limit on total value
• May acquire any or all

200% Rule:

• Identify more than 3 properties
• Total FMV cannot exceed 200% of relinquished property
• May acquire any or all

95% Rule:

• Identify any number of properties at any value
• MUST acquire 95% of the total value identified
• High-risk rule - rarely used

This template is provided for informational purposes and should be reviewed by a qualified tax professional before use in a 1031 exchange.