The replacement property is
properly identified only if in writing and delivered
to the QI by the end of the 45th day. The replacement
property must be identified with specificity,
either by address, tax map and parcel number,
unit number, etc.
You may identify more than one property as replacement,
but you must comply with one of three rules.
You may identify up to three properties with any
value to replace your relinquished property.
Or, you may identify more than three properties
as possible replacements for your property as
long as the aggregate value of those replacements
does not exceed 200% of the value of your property.
For example, if you have an apartment building
for sale, and its value is $200,000, you can identify
any number (over 3) of replacement properties
with a combined value of $400,000, regardless
of any debt you may have on the apartment building.
Or, you may identify any number of properties
as long as you end up purchasing at least 95%
of the aggregate value of all properties identified.
Independent Trustees can supply you with a sample
identification letter. |
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