• In a written document signed by the Exchanger;
• Hand delivered, mailed, telecopied, or otherwise sent;
• Before the end of the identitication period to;
• Either the person obligated to transfer the replacement property to the Exchanger [generally the Qualified Intermediary] or any other person involved in the exchange other than the taxpayer or a disqualified person.

The replacement property must be unambiguously described (i.e. legal description, street address or distinquishable name). The specific type of property should be described in a personal property exchange.

ADDITIONAL ISSUES

Exchangers acquiring a property which is being constructed must identify this property and the improvements in as much detail as is practical at the time the identification is made. Exchangers who intend to acquire less than a 100% ownership interest in the replacement property should specify the specific percentage interest. Exchangers should always consult with their tax and/or legal advisors about the specific identification rules and restrictions.

Any properties acquired within the 45-day identification period are considered properly identified. An investor has the ability to substitute new replacement properties by revoking a previous identification and correctly identifying new replacement properties as long as this is done in writing within the 45-day identification period and adheres to all the identification requirements. Although Exchangers can identify more than one replacement property, the maximum number of properties that can be identified is limited to:

Three properties without regard to their fair market value (3 Property Rule);

Any number of properties so long as their aggregate fair market value does not exceed 200% of the aggregate fair market value of all relinquished properties (200% Rule);

Any number of properties without regard to the combined fair market value, as long the properties acquired amount to at least ninety five percent of the fair market value of all identified properties (95% Exception).

This information is not intended to replace qualified legal and/or tax advisors. Every taxpayer should review their specific transaction with their own legal and/or tax counsel.