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How many properties can I identify? |
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The IRS regulations place restrictions on the number of properties that may be identified during the identification period. For the possibility that the deal the taxpayer wants to do may fall through, the taxpayer may designate more than one property (generally up to three, or more than three if the total value of the new properties designated is less than twice the value of the property sold). One can also identify fractional interests in property that will be held in a co-tenancy. However, if, at the end of the identification period, you have identified more properties than permitted, you are treated as if no replacement property had been identified. Accordingly, the tax-deferral exchange treatment will be denied.
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