The General Rules is:
1. equal to or up in total market value
2. up in equity
3. up in debt
What are the identification rules??
Three property Rule-The Exchanger may identify three (3) properties of any value; or
200% Rule-The Exchanger may identify more than three (3) properties if the total fair market value of what is identified does not exceed 200% of the sale price of the relinquished property: or
95% Rule– If the Exchanger identifies more than three (3) properties and the total value exceeds 200% of the sale price of the relinquished property, to have a successful exchange, the Exchanger must acquire 95% of the fair market value of what was identified.
How is the identification made?
- The identification must be made to a party to the exchange (i.e., the Qualified Intermediary)
- It must be in writing.
- It must be “unambiguous”
- It must be signed by the Exchanger.
- It must be delivered, mailed, telecopied, or “otherwise sent” within 45 days of the close of the relinquished property.