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Rules for Identifying the Replacement Property:

Identification period is 45 days from close of escrow on relinquished property. You must identify in writing and the language must be specific to the replacement property so as not to confuse with any other property. The identification must be signed and sent to the Qualified Intermediary (Investment Advantage Group, LLC) on or before midnight of the 45th day.

The Exchanger has a total of 180days to close escrow on the replacement property from the close of Escrow on the relinquished property. The 45 day identification period is included in the 180 day time frame.

Multiple Replacement Property Rules:

The number of replacement properties that may be acquired must fall within one of the three following rules. (IRC revisions 1991) Whether one property or more than one property is transferred by the taxpayer as part of one exchange.

1.) Three Property Rule:

The taxpayer may identify as potential eplacement property any three properties, without regard to their market value. A taxpayer may eliminate one identified property and replace it with another. or;

2.) The 200% Rule:

The taxpayer may identify as potential replacement property any number of properties, as long as the aggregate (total) fair market value of the identified properties does not exceed 200% of the aggregate fair market value of all the relinquished properties as of the initial transfer date. or;

3.) 95% Exception:

If the taxpayer has identified more properties than are permitted under both of the above rules, the taxpayer must receive, by the end of the exchange period, property whose fair market value is at least 95% of the aggregate fair market value of all the properties identified.