Can I Identify More Than One Replacement Property?
At 1031 Exchange Place, we understand that identifying the right replacement property is crucial for a successful 1031 exchange. One common question that our clients ask is whether they can identify more than one replacement property. The answer is yes!
According to the IRS guidelines, a 1031 exchange allows you to identify up to three potential replacement properties, regardless of their value, as long as you close on one or more of them within the 180-day exchange period. This is known as the Three Property Rule.
Alternatively, you can identify any number of replacement properties, as long as their combined fair market value does not exceed 200% of the value of the relinquished property. This is known as the 200% Rule.
Additionally, there is another rule called the 95% Rule, which allows you to identify any number of replacement properties, regardless of their value, as long as you acquire properties worth at least 95% of the total value of all identified properties.
While you can identify more than one replacement property in a 1031 exchange, there are rules and limitations to keep in mind. Be sure to work closely with a qualified intermediary and tax professional to ensure that you comply with all IRS requirements and make the most of your investment opportunities. At 1031 Exchange Place, our team of experts can guide you through the exchange process and help you identify the right replacement properties for your portfolio.
The Ultimate Guide to Investing in Real Estate Through a 1031 Exchange
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