Free tool

1031 identification rule checker

Does a replacement property list meet the three-property rule or the 200% rule? Enter the values and see, with the same evaluation the Regent exchanger portal runs as a client types.

Meets the three-property rule

Up to three replacement properties may be identified, of any value.

Properties identified: 3
Combined value: $1,850,000
200% limit: $2,000,000
95% of combined value: $1,757,500

Identification must be in writing, signed by the exchanger and delivered to the intermediary by the end of day 45. Values are fair market values without regard to debt. This checks the arithmetic only and is not tax advice.

The rules

Three-property, 200% and 95%.

Rule	The test	Example: $1,000,000 property sold
Three-property rule	Identify up to three properties, of any value.	Three properties worth $2.5M, $1.8M and $900K: qualifies.
200% rule	Identify more than three, if their combined fair market value is no more than twice the property sold.	Five properties worth $1.9M together: qualifies (limit $2M).
95% exception	If neither rule is met, acquire at least 95% of the combined value identified.	Four properties worth $2.15M: the exchanger must buy at least $2,042,500 of them.

Fair market value without regard to debt. Treas. Reg. §1.1031(k)-1(c)(4).

Getting it in writing

The list only counts if it's delivered in time.

Identification must be in a written document signed by the exchanger, describe each property unambiguously (a street address or legal description), and be delivered to the qualified intermediary or another permitted party by the end of day 45. Property bought before day 45 counts as identified. Revocations must also be in writing and delivered before day 45.

Need day 45 for a sale? Use the 1031 deadline calculator.

Straight answers

Questions about identification

Can I identify a fourth property under the three-property rule?: Not without moving to the 200% rule, which then applies to the whole list. Four properties must together be worth no more than twice the property sold.
What value counts for the property sold?: Its fair market value at transfer. In practice the sale price is the usual estimate.
Can I change my list?: Yes, until the end of day 45, by a signed written revocation and a new identification delivered in time.
How does Regent use this?: Exchangers build their list in the portal and see this check live, sign the notice, and your staff confirm it. See identification rule checks.

This checker tests the arithmetic only. It is not tax or legal advice and does not decide whether a property is like-kind.

Keep going

Let your exchangers run this themselves.

In Regent, the check runs as your client types, and the signed notice comes straight to your staff.

Your team has a direct line to ours.