How Long Do You Have to Identify a Property in a 1031 Exchange in Coeur D Alene, ID?

In a 1031 exchange, once the relinquished property in Coeur D Alene, ID is sold, the investor has 45 calendar days to identify potential replacement properties. This is known as the 45-day identification period, and it begins the day after the sale closes.

1031 Exchange Identification Rules in Coeur D Alene, ID

To comply with IRS 1031 exchange rules, investors must properly identify their replacement property within 45 days and follow these guidelines:

• Written Identification – The identification must be in writing, signed by the investor, and delivered to the Qualified Intermediary (QI), seller, or escrow agent. Email or fax is acceptable if agreed upon.
• Specific Description – The property in Coeur D Alene, ID must be clearly described, including its legal description, street address, or a distinguishable name (e.g., “The Maple Street Apartments”).
• Identification Deadlines – The identification must be made by midnight of the 45th day. If the 45th day falls on a weekend or holiday, the deadline is not extended.

Example of 1031 Exchange Identification Rules

If an investor sells a property for $1,000,000, their identification options are:

• Three-Property Rule – Identify up to three properties of any value.
• 200% Rule – Identify more than three properties, but their total value cannot exceed $2,000,000.
• 95% Rule – Identify any number of properties but must acquire 95% of the total identified value.

What Happens If You Miss the 45-Day Deadline?

Failing to meet the 1031 exchange identification deadline in Coeur D Alene, ID can disqualify the exchange, meaning:

• The investor will owe capital gains taxes on the sale.
• They may also be subject to depreciation recapture taxes.
• The exchange will no longer be IRS-compliant, requiring full tax payment on the gain.