The three identification rules
Three-property rule
3
Identify up to three properties, at any value, then purchase one, two, or all three. The rule most exchangers use: if you’re confident in your targets, this is the simplest path.
200% rule
200%
Need a longer list? Identify more than three properties, as long as their combined fair market value doesn’t exceed 200% of the value of the property you sold. Useful when you’re assembling several smaller replacements.
95% exception
95%
Identify more than three properties and blow past the 200% cap, and the exchange only survives if you actually acquire at least 95% of the total value you identified: in practice, nearly everything on the list. Treat this as a last resort, not a strategy.
What a valid identification looks like
- In writing, signed by you, delivered to your QI on or before day 45
- Unambiguous: a street address or legal description, not “a duplex somewhere in Springdale”
- Revocable and replaceable until day 45: you can swap properties on the list any time inside the window, in writing
How we help
We provide the identification forms, confirm receipt in writing, and send reminders as day 45 approaches. If your plans shift mid-window, call us and we’ll re-paper the identification the same day.
See also The full deadline rules: the 45-day and 180-day periods