Replacement Property Identification Information & Forms

  1. Three Basic Identification Guidelines for a 100% tax deferred exchange:
    1. Equal or Greater Property Value: Replacement Property fair market value should be equal to or greater than the fair market value of the Relinquished Property.
    2. Use all proceeds from the sale: You should use all of your exchange proceeds from the sale of the Relinquished Property to acquire your replacement property.
    3. Equal or Greater Debt: No “Debt Relief” allowed, Your Replacement Property debt (mortgage) should be equal to or greater than your Relinquished Property debt (mortgage) or you can use funds already taxed in lieu of debt.
  2. Exchangor (Taxpayer) can identify alternative and/or multiple Replacement Properties by using either the Three-Property Identification Rule, the 200 Percent Identification Rule or the 95% Identification Exception.
    1. Three Property Rule - Identify up to three like kind replacement properties without regard to total aggregate value of the properties.
    2. 200% Rule - Identify as many like kind replacement properties as you wish provided the total aggregate value of all properties identified does not exceed 200% of the sales price of your relinquished property.
    3. 95% Exception - If you identify more than three properties and exceed the 200% limitation you must purchase 95% of the aggregate value of the identified properties
  3. The Identification of Replacement Property Form must be completed, dated and signed by the Exchangor (Taxpayer) then submitted to and approved by Pioneer 1031 Company. The form can be forwarded as follows: 1) sent via U.S. Mail (postmarked), 2) facsimile (time and dated stamped), or 3) email. It must be received/postmarked by Pioneer 1031 Company NO LATER THAN MIDNIGHT ON THE 45 CALENDAR DAY following the transfer (conveyance of title) of the Relinquished Property. This is a statutory requirement pursuant to Section 1031 of the Internal Revenue Code. If you are considering making improvements on your replacement property as part of your exchange, please contact our office for additional information prior to identifying.

PLEASE NOTE: Identifying Replacement Properties can be a complex process. Exchangor (Taxpayer) should always consult with their legal and/or tax advisors prior to completing the Identification of Replacement Property Form. Pioneer 1031 Company is always available to help you with completing the Identification of Replacement Property Form.

Please contact our offices at toll-free (800) 556-1031 for assistance. Below is a link for a copy of an identification form for your use. Upon closing of your relinquished property closing we will provide you with an identification form that will  include the actual dates for your specific transaction.

Printable Property Identification Form: Download PDF (0.94 MB)

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