admin / January 25, 2019
Within 45 days of the closing on the sale, the taxpayer must “identify” the new property. The identification must be specific (such as the address of property or the make or model of a vehicle if one is exchanging a truck, for instance). For the possibility that the deal the taxpayer wants to do may fall through, the taxpayer may designate more than one property (generally up to three, or more than three if the total value of the new properties designated is less than twice the value of the property sold). One can even identify fractional interests in property that will be held in a legitimate co-tenancy (and not a partnership). Identification is made by sending the qualified intermediary written notice of the targeted new property.
« Previous Next »