Exchange Timelines & Deadlines Flashcards
6 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Exchange Timelines & Deadlines flashcards as text
Which identification rule allows a taxpayer to identify any number of replacement properties as long as their combined fair market value does not exceed 200% of the relinquished property's FMV?
Answer: 200% rule
The 200% rule allows identification of any number of properties as long as their aggregate FMV does not exceed 200% of the relinquished property's FMV.
Under the three-property rule, how many potential replacement properties may a taxpayer identify?
Answer: Up to three properties regardless of value
The three-property rule allows identification of up to three replacement properties regardless of their combined fair market value.
The 95% rule allows a taxpayer to identify any number of properties, but requires that:
Answer: At least 95% of the identified properties be acquired
Under the 95% rule, a taxpayer may identify any number of properties but must actually receive 95% or more of the aggregate FMV of all identified properties.
When does the 45-day identification period begin?
Answer: On the date the relinquished property is transferred to the buyer
The 45-day identification period begins on the date of the actual transfer (closing) of the relinquished property.
Must replacement property identification be submitted in writing to qualify under IRC 1031?
Answer: Yes, identification must be in writing and signed by the taxpayer
Treasury Regulations require that replacement property be identified in a written document signed by the taxpayer and delivered to the QI or another qualified party.
If a taxpayer closes on the relinquished property on March 1, what is the last day to identify replacement property?
Answer: April 15
Counting 45 calendar days from March 1, the identification deadline falls on April 15.